United States: Donald Trump cuts tariffs for car manufacturers

US President Donald Trump on Tuesday decided to spare US automakers from paying a cumulative tariff on imported vehicles and parts, and also granted them temporary relief, as the US president's popularity wanes .

"We simply want to help them during this transition period. Short term," the president said before leaving for Detroit, Michigan, the heart of the American auto industry, to mark his first 100 days in office. Manufacturers will thus be exempt from paying other customs duties, such as those on steel or aluminum. They will pay the "highest" amount, a Commerce Department official had indicated earlier.

A temporary system put in place

The president also decided to implement a temporary measure to reduce the customs bill for manufacturers producing and selling their vehicles in the United States. This is intended to "protect national security by encouraging domestic automobile production and reducing U.S. dependence on imports of foreign vehicles and their parts," the proclamation states.

For all vehicles manufactured and sold in the United States using imported spare parts, American and foreign manufacturers will be able to deduct 15% of the recommended retail price the first year - and 10% the second - from the 25% customs duties on subsequent imports.

This will correspond, the proclamation details, to a deduction of 3.75% of the recommended price the first year (April 3, 2025 to April 30, 2026) and 2.50% the second ( ^May 1, 2026 to April 30, 2027).

This is "a deduction and not a refund," the ministry official explained, stating that this two-year period had been deemed sufficient by manufacturers to establish a supply chain in the United States.