“GM manufacturing plant located in Tennessee, USA [Reuters]”
“[Herald Business = Reporter Jeong Mok-hee] Bloomberg News reported on the 16th (local time) that the Donald Trump administration is pursuing tariff relief for the American automotive industry.”
“According to sources, the U.S. Department of Commerce is expected to announce a plan to extend for five years the system that allows for reduced tariffs on imported auto parts.”
“Originally, these tariff relief measures were set to end in two years.”
“In a proclamation signed last April, President Trump instructed that tariffs on parts accounting for 15% of the value of cars assembled in the U.S. be reduced for one year, and in the following year, tariffs on parts accounting for 10% of the value be reduced.”
“Accordingly, the Department of Commerce allowed automakers to use 3.75% of the total manufacturer’s suggested retail price of all cars assembled in the U.S. over a year from April to offset parts tariffs. For the subsequent year, 2.5% of the total manufacturer’s suggested retail price can be used for tariff offsets.”
“Sources reported that the Department of Commerce’s announcement could be made as early as the 17th.”
“Bloomberg observed that these relief measures are seen as the result of months of lobbying by American automakers like Ford and General Motors (GM).”
“U.S. automakers are incurring higher costs due to tariffs imposed on imported vehicles and parts, as well as on raw materials like steel and aluminum.”