Washington reduces tariffs on imported auto parts starting Tuesday.

 

Washington, D.C.

Washington reduces tariffs on imported auto parts starting Tuesday.

The Trump administration announced Tuesday that it would ease tariffs on foreign auto parts used in domestically produced vehicles, avoiding additional tariffs on imported vehicles altogether. The move, announced by Commerce Secretary Howard Lutnick via the White House, is a "victory for Trump's trade policy" after the Alliance of Automobile Manufacturers warned that a 25% tariff on imports could raise prices and reduce sales.

Starting Tuesday, the Trump administration will begin taking steps to mitigate the impact of tariffs on the auto sector. These measures include reducing some tariffs on foreign-assembled parts in the United States, as well as refraining from imposing new tariffs on imported cars in addition to existing tariffs.

U.S. Commerce Secretary Howard Lutnick explained in a statement issued by the White House that Trump is "building an important partnership with both domestic automakers and our great American workers."

The minister described the move as "a major victory for the president's trade policy, as it rewards companies that manufacture domestically, while providing an opportunity for manufacturers who have expressed a commitment to investing in America and expanding their domestic manufacturing."

Automakers had previously anticipated a tariff relief ahead of the president's visit to Michigan, the center of the American auto industry and home to major companies and more than 1,000 key suppliers.

The Alliance of American Automobile Manufacturers warned the administration a few days ago that imposing a 25% tariff on imported parts could raise prices and reduce sales, urging it to avoid the measure.