president Donald Trump Executive orders signed on Tuesday to Detit some tariffs by 25 % On cars and car parts, which is a great reflection as it threatened to import taxes to harm local manufacturers.
Independent car manufacturers and analyzes indicated thisDefinitionsIt can raise prices, reduce sales and make production less competitive around the world. Trump’s pictures of changes as a bridge towards car manufacturers. Transfer more production to the United States.
“We just wanted to help them during this small transition, in the short term,” Trump told reporters. “We didn’t want to punish them.”
Treasury Secretary Scott Bessin, who spoke earlier in the White House on Tuesday, said that the goal is to enable car manufacturers to create more local manufacturing jobs.
“President Trump has held meetings with both local and foreign auto producers, and he is committed to reproducing cars to the United States,” said Pesin. “So we want to give car manufacturers a way to do so, quickly, efficiently and create the largest possible number of jobs.”
Trump signed one thing on Tuesday, which modified the tariff of the previous 25 % cars, facilitating the compounds that are assembled in the United States with foreign parts that do not face import taxes prohibited.
The amended one -year a year provides 3.75 % for sales prices for locally assembled vehicles. This number was reached by 25 % import tax on parts that make up 15 % of the car sales price. For the second year, the discount will equal 2.5 % of the price of the car sales, as it applies to a smaller share of the car parts.
A senior official in the Ministry of Commerce said, and insisted that his identity not be disclosed by examining the demand for a call with the journalists, and Trump manufacturers said that the extra time would enable them to increase the construction of new factories, after car manufacturers warned that it would take some time to take their supply chains. The official said that the car manufacturers will announce during the next month additional transformations of the new workers and appointments and new facilities plans.
Stelantis The Chairman of the Board of Directors, John Elcan, said in a statement that the company estimates measures to reduce the customs tariff for the president.
He said: “While we also evaluate the impact of customs tariff policies on our operations in North America, we are looking forward to our continuous cooperation with the American administration to enhance the American car industry competitive and stimulate exports.”
General Motors CEO Mary Barra said that the auto manufacturer is grateful to support Trump Industry, and indicated that the company is looking forward to talks with the president and working with the administration.
“We believe that the president’s leadership is helping to settle the field of playing for companies like General Motors and allowing us to invest more in the American economy,” Bara said in a statement.
Jim Farley, President and CEO of the company Ford Motor He stressed that his company is doing more than its peers to manufacture locally.
“We will continue to work closely with the administration to support the president’s vision for the health and growing auto industry in America,” said Farley. “With the right policies in place, it will be important for the main importers of vehicles to suit Ford’s commitment to construction in America. If every company sells vehicles in the United States is identical to the American manufacturing rate in Ford, 4 million cars will be collected in America every year.”
Sam Fiwrani, an analyst at Autoforecast Solutions, said that changing the direction does not help an industry that flourishes stability.
“Finding a way to restore the auto industry should be very important in this,” said Fiiori. “The definitions in this industry have not seen, the way it works, and expects to be able to jump and transfer production in the blink of an eye. It does not work in this way.
“The production change of vehicle manufacturing takes minimal and months, and it is usually years, along with hundreds of millions, if not billions of dollars,” he added. “Thus, it is not something they take lightly.”
The Wall Street Journal first reported the details of the procedures. Calculate the fast response to the White House on x Trump, signed in second place on Tuesday afternoon, said to prevent his various definitions from being stacked over his current strikes on imported cars and car parts.
Some have seen the customs duties imposed by TrumpAn existential threat to the auto sector. Arthur Lavre, who gave Trump the presidential medal to freedom during his first term, said in a special analysis that the definitions that can not be any modificationsAdd $ 4,711 to the cost of the car.
Selling new cars in47462 dollarsOn average last month, according to Kelley Blue Book. Definitions are tightened by the supply chain of cars, a complex network that extends over the world. It is not only many car parts across the border of North America several times before they areIt was collected in a final vehicleCar manufacturers depend on suppliers all over the world for thousands of ingredients.
Certainly, the increase in fees will cost the new-car buyers-sensitive to inflation-more, which leads them to the used vehicle market and quickly strive to have the availability of pre-owned cars. Definitions alsoIt affects the cost of owning and maintainingcar.
The modifications come as Trump’s signs100 days of returnIn the White HouseGoing to MichiganIt is a specific country by manufacturing cars. Trump won the country in the elections last year by promising to increase the factory jobs.
However, it is still unclear what is the effect of Trump’s broader tariff on the American economy and car sales. Most economists say the definitions – which can eventually reach imports – will raise prices and slow economic growth, and may harm car sales despite the relief that the administration intends to provide to its previous policies.
This story was originally shown on Fortune.com
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