US President Trump has signed a decree to mitigate tariffs for car manufacturers. In the future, only one customs tariff will apply: either 25 percent surcharge for cars built abroad or 25 percent inches on steel or aluminum.
US President Donald Trump has signed a decree with customs make-up for car manufacturers. Trump’s arrangement stipulates that the manufacturers are not burdened several times by tariffs for cars and for material such as steel.
As a representative of the US Ministry of Trade announced, companies in the United States should only pay one customs tariff: either the 25 percent surcharge for cars built abroad or the 25 percent inch on steel or aluminum. The regulation should also apply to foreign car manufacturers in the United States, according to the US government agent. He cited BMW as an example with his factory in the state of South Carolina or Mercedes in the state of Alabama.
Companies should build supply chains in the USA
According to the decree, a transition period of two years also applies to all vehicles manufactured and sold in the United States that rely on imported spare parts. In the first year (April 3, 2025 to April 30, 2026), US and foreign manufacturers can therefore use a customs reduction of 3.75 percent. In the second year (May 1, 2026 to April 30, 2027), a discount of 2.5 percent applies – from the third year the transition period ends. This is intended to help companies build supply chains in the United States within two years.
This will help the car manufacturers “at short notice”, Trump said before he left to Detroit in the US state of Michigan. In the city of Warren north of Detroit, he gave a speech on the first 100 days of his second term. The leading US car manufacturers General Motors, Ford and Chrysler are based in Detroit.
The US works of German car manufacturers rely on imports from third countries. German companies also export auto parts to the USA to a larger scale – both as a delivery for American carmakers and for the car factories of German manufacturers in the USA.
Experts warn of falling sales figures
Trump wants to bring investments and jobs back to the United States with his customs policy. However, experts warn that the tariffs lead to higher car prices and that the sales figures for the US carmakers could decrease – and thus gave jobs in danger.
According to estimates of market researchers, around half of the vehicles sold in the USA are assembled outside the country. Even US manufacturers produce many cars abroad, for example in Mexico. And the vehicles built in the USA also only come from their own country to 40 to 50 percent.
According to Trump’s tariffs, industry representatives had also pointed out that the factories could not be moved to the USA at short notice.
US carmakers react positively
US trade minister Howard Lutnick told Wall Street Journal that Trump’s “Deal” will be “a great victory for the president’s trade policy because companies are rewarded that are already producing domestically”. At the same time, manufacturers who have invested investments in the United States and an expansion of domestic production are “shown a way”.
US carmaker welcomed the step. “We are grateful for President Trump for his support from the US auto industry and the millions of Americans who are dependent on us,” said General Motors, Mary Barra, for example. The stock exchanges reacted positively to the customs easier. The New York Wall Street Castle with price gains in Asia and Europe had also gained.
