1 day Ago By The Korea Herald
US President Donald Trump signed a proclamation Tuesday to give two-year auto part tariff relief to companies that assemble cars in the United States, amid the automotive industry's growing concerns over the ramifications of new levies. The proclamation came after the Trump administration started imposing 25 percent tariffs on imported automobiles on April 3, with 25 percent duties on certain auto parts set to come no later than Saturday. It outlined a measure to reduce duties on imported auto parts, which account for 15 percent of the value of a US-assembled automobile for one year, and then for 10 percent of that value for an additional year before it is phased out.
Under the measure, carmakers may apply for an "import adjustment offset" amount equal to 3.75 percent of the sticker price of all cars assembled in the US from April 3 through April 30 next year, and for an amount equal to 2.5 percent of the retail price from May 1, 2026, through April 30, 2027.
The move came as the Trump administration is encouraging automakers to bring their auto supply chains back to America. In a telephonic press briefing, a senior US official noted that the measure came as automakers said currently at least 15 percent of their auto parts are imported ones while stressing that the two-year duration of the measure is sufficient for auto companies to have their US-based supply chains. "So all cars that are finished in America, that have 85 percent domestic content will now have no tariff whatsoever," he said.
The official also said that the measure applies to all US-manufactured cars, including foreign brands. Trump has been forging ahead with his tariff policy to boost domestic manufacturing, attract foreign investments and pare down America's trade deficits. (Yonhap).
