A Break in the Auto Tariffs' Tide? Possible Exemptions for Certain Sectors Under Trump
Trump may consider limiting specific import taxes
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It seems that the Trump administration may hold back on certain sector-specific tariffs while moving forward with reciprocal duties in April, according to reports from Bloomberg and the Wall Street Journal.
In a shift from his earlier stance, US President Donald Trump has expressed flexibility in imposing auto tariffs, postponing some of them following pressure from the three major US automakers. Previously, Trump expressed intentions to impose 25% tariffs on auto and similar tariffs on semiconductor and pharmaceutical imports, as per reports in February.
Navidi Sandra Navidi, BeyondGlobal - "Tariff Ping-pong is Pouring Toxicity on the Markets" According to the Wall Street Journal, officials have stated that sector-specific tariffs are unlikely to be announced on April 2. Yet, the White House continues to plan for reciprocal tariff measures on that day, although the planning is yet to be finalized.
Tesla's Stock Soaring on "Tariff Hope"
Trump's plans for the new reciprocal tariffs, which were announced last week, have not changed, despite earlier suggestions made by Treasury Secretary Steven Mnuchin pointing towards a possible delay. The White House has not responded to this query as of yet.
The media has stirred hope in the stock market with Tesla's shares rising by 5.4% on Wall Street. Susannah Streeter, Hargreaves Lansdown's investment manager, remarked, "There's genuine hope that Trump's tariffs could be contained and minimize further damage to Tesla's growth prospects."
Trump's belief that the USA is at a disadvantage in international trade has led him to set a 2.5% tariff on car imports from the EU, compared to the EU's 10% tariff on US car imports.
Reference(s): ntv.de, jki/rts
- USA
- Tariffs
- Donald Trump
- Tesla Models
- US Automakers
EC countries may be affected by the employment policy changes resulting from the announced tariffs, as global automakers, including US ones, have agreed to lobby against auto tariffs to limit potential job losses within their industries. Despite the delay suggested by Treasury Secretary Steven Mnuchin, President Trump's plans for the new reciprocal tariffs have not changed. WhatsApp messages discussing the potential for reciprocal tariffs could serve as evidence in future discussions about employment policy within EC countries.
