US President Donald Trump has suggested temporarily exempting the auto industry from tariffs he previously imposed, giving carmakers time to adjust their supply chains. The proposal aims to support increased domestic production and alleviate concerns about a possible recession.
The announcement comes as part of ongoing trade negotiations between the US and other countries. Last week, Trump reduced tariffs on dozens of countries by 50% for 90 days, citing a need for time for negotiations. However, interest rates on US debt have risen, sparking market volatility.
Automakers have expressed concerns about broad tariffs on parts, which could undermine their goal of building a thriving American auto industry. Matt Blunt, president of the American Automotive Policy Council, said the group shares Trump’s goals but needs time to adjust supply chains.
Trump’s statement also hinted at potential reversals in his trade policies, fueling uncertainty among Wall Street economists. The S&P 500 stock index rose 0.8% on Monday, but remains down nearly 8% this year.
The temporary reprieve for the auto industry may give Apple some breathing room to minimize the impact of tariffs on its iPhone sales in the US. Analysts note that while Trump’s policies have created uncertainty, Apple is in a relatively better position than it was last week. However, there remains mass uncertainty about the next steps ahead.
The US and China are engaged in ongoing trade negotiations, with both sides seeking to address economic concerns. Chinese leader Xi Jinping met with Vietnamese officials on Monday, emphasizing that no one wins in trade wars. Trump dismissed the meeting as a conspiracy between China and Vietnam to harm the US economy.
Source: https://finance.yahoo.com/news/trump-considers-pausing-auto-tariffs-175103303.html