Trump Eases Auto Tariffs to Boost Domestic Production

President Donald Trump has approved new relief measures for U.S. automakers by softening his 25% tariffs on vehicles and auto parts. The latest orders aim to encourage domestic production, offering credits to manufacturers assembling vehicles in the U.S., while excluding goods from China.

In a significant policy shift, U.S. President Donald Trump has announced relief measures for domestic automakers by moderating the 25% tariffs on vehicles and auto parts. This decision is part of his broader strategy to bolster domestic manufacturing and enhance the United States' competitive edge.

Earlier, the Trump administration had temporarily exempted certain electronic goods from tariffs, signaling a tactical shift in his trade policies. Now, with a focus on the automotive sector, Trump has stipulated that vehicles subject to his Section 232 tariffs will not incur additional taxes on steel, aluminum, or associated goods linked to the U.S. fentanyl crisis.

The administration is also offering a credit to automakers for vehicles assembled in the U.S., advancing national security by potentially increasing research into cutting-edge automotive technologies. However, this credit excludes parts from China, underscoring a continued tough stance on Chinese imports.

(With inputs from agencies.)