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Trump to Offer Tariff Reprieve to Automakers

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Bloomberg 06:34 · 7420 Views

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  • 00:00 How much
  • 00:01 of A reprieve exactly is the Trump administration giving the auto sector?
  • 00:07 Well, it's definitely welcome news.
  • 00:09 And, you know, you already see comments from Ford and GM confirming that they get parts that are, that are manufactured abroad.
  • 00:16 They have,
  • 00:17 there are others like Volkswagen and BMW that make cars in the United States,
  • 00:22 but their supply chains go outside of the boundary.
  • 00:24 So, you know, these these
  • 00:26 these supply chains that they've set up over decades
  • 00:29 are now in in deep trouble.
  • 00:31 So
  • 00:32 the extent to which these
  • 00:35 the reprieve the Trump administration's giving now is going to affect their businesses there, it's certainly welcome.
  • 00:40 But it's also a tiered approach.
  • 00:43 So they're avoid, they're kind of
  • 00:44 avoiding the worst case scenario.
  • 00:46 Basically, what they're going to the Trump administration is
  • 00:50 poised to do is to avoid this
  • 00:52 stacking of tariffs where imported cars would also be, would not only be taxed from the import, but also
  • 00:58 suffer the steel and aluminum tax
  • 01:01 that they have.
  • 01:01 And
  • 01:02 at the same time, cars manufactured in the US are going to get
  • 01:06 a bit of a
  • 01:07 easier deal on foreign parts that they that they bring in.
  • 01:11 And that's going to be tiered over time,
  • 01:13 the administration says, to give them time to relocate their production to the United States.
  • 01:18 So it's not a, it's not a full
  • 01:20 reprieve, but it is something that's very welcome to car manufacturers that are on the edge right now.