Trump reduces the impact of customs duties on the American auto industry economy

A senior White House official announced that US President Donald Trump is preparing to take measures to alleviate the impact of customs duties on auto manufacturers in the United States, in a move aimed at supporting the local industry and reducing the repercussions of its commercial policies.

“This agreement represents a great victory for the president’s commercial policy through the bonus of locally manufactured companies,” US Trade Minister Howard Lootnick said in a statement carried by Reuters.

According to the Wall Street Journal, Trump will announce measures to reduce some fees imposed on imported spare parts used to manufacture cars within the United States. Also, cars made outside the country will remain in customs duties on cars, but they will not be imposed on additional fees such as those imposed on steel and aluminum products.

Trump is expected to announce these measures during a gathering in Michigan state today, Tuesday, on the occasion of the 100th anniversary of his official assumption. Michigan is the seat of what is known as the “major automobile industry”: Ford, GMARS (GM), and Stelins, as well as a network of more than 1,000 major industry supplies.

Welcome to the drivers of the auto industry

Commenting on the move, the CEO of General Motors, Mary Barra, said in a statement sent via BBC: “We are grateful to President Trump for his support for the American auto industry and millions of Americans who depend on it,” adding: “We appreciate the fruitful talks with the president and his administration and look forward to continuing joint cooperation.”

For its part, Ford welcomed the decision, considering that “it will help reduce the impact of customs duties on car manufacturers, suppliers and consumers.” The company added in its statement: “We will continue to work closely with the administration to support the president’s vision for the manufacture of healthy and growing cars in America.”

Ford emphasized that the policies that encourage export and ensure the availability of affordable supply chains are necessary to achieve more local growth, noting that “it will be important for the largest car import companies to build factories in America, which may lead to a boom in establishing new collection factories and suppliers and finding hundreds of thousands of jobs.”

Michigan is the seat of what is known as the “older car” manufacturer: Ford, GM Motors (GM), and Stilntes (Reuters)

Warnings from the sector

This partial decline comes after wide warnings from the sector. Last week, a coalition from the American auto groups sent a message to the Trump administration, calling on it not to impose customs duties by 25% on imported auto parts.

The letter, which represented companies such as General Motors, Toyota and Volkswagen, said that these fees “will lead to the high prices of cars for consumers, the decline in sales in agencies, and make car maintenance and repair more expensive.”

Trump had previously announced that the new drawings would enter into force by May 3.