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President Donald Trump signed An executive decree and a proclamation Tuesday To facilitate car rates, the last sudden change in a rapidly evolving pricing policy that let the companies rush to follow.
The 25% price on imported cars will continue, and a new 25% rate on automotive parts will come into force this weekend, as announced previously. But there are new characters.
The new shares signed by Trump allow reimbursements for large domestic cars producers, which will be subject to 25% prices from May 3. Maximum reimbursement will be 3.75% of the value of cars produced in the country. The ceiling will decrease to 2.5% for the second year and will be removed entirely thereafter.
During a rally in Michigan to mark the first 100 days of his second term, Trump said that reimbursements would help give us car companies “a little break” while car manufacturers were working to bring more manufacturing capacity to the United States.
“They have taken pieces from around the world,” said Trump about car manufacturers. “I don’t want that. I want them to do their games here. ”
The changes would also protect car manufacturers from several prices linked to several car. Instead, they will not be subject to the highest rate associated with everything they imported. This means, for example, that they could end up paying a price of 25% on a car part and no longer 25% tariffs on the steel and aluminum used.
Cars containing 85% of combined parts in accordance with the agreement of the United States-Mexico-Canada and produced at the national level will not face any price.
However, Trump stressed that the decree only provides a temporary break to automotive companies, which allows them to re-shore more time to re-shore their manufacturing capacities.
“We gave them a little time before shooting them down if they don’t do it,” said Trump.
Kevin HassettDirector of the National Economic Council of the White House, CNN Hunt Hunt told Kasie Hunt earlier on Monday, the order was signed while Trump went to Michigan.
“It is a question of bringing workers back to work in the places where we do things to America,” said Hassett on “The Arena”.
The decision to mitigate the car rates came while Trump used the calls of several CEOs of car manufacturers, three managers of the familiar White House said with CNN discussions. “The president wants to maintain flexibility,” one of the officials told CNN, has granted anonymity to detail private conversations.
The senior officials of the Commerce Department who previewed the new actions told journalists on Trump’s steep prices to be complained about production and hiring in the United States on Tuesday.
The automotive industry, including car manufacturers and dealers, has put pressure on the reduction of samples, claiming that import taxes hammered the finances of the Americans and hindered their own supply chains.
Last week, a coalition of American and international car manufacturers wrote a letter To the Trump administration requesting relief, similar to the exemptions already granted to semiconductors and consumer electronics.
“Automobile parts will scramble the global automotive supply chain and trigger a domino effect that will cause higher automobile prices for consumers, a drop in sales among dealers and make maintenance and repair of vehicles that are both more expensive and less predictable,” said the letter.
“We are grateful to President Trump for his support for the American automotive industry and the millions of Americans who depend on us,” the CEO of General Motors said Mary Barra on Monday.
At the same time, GM said that he was no longer held behind his advice to improve profits in 2025.
“Given the evolution of the nature of the situation, we believe that the future impact of the prices could be important, so we re -evaluate our advice and we are impatient to share more when we have greater clarity,” the financial director Paul Jacobson told journalists on Monday evening. GM should publish the results of the first quarter results Thursday, after a two -day delay.
GM actions (GM) closed more than 0.6% on Tuesday. Meanwhile, the actions of other car manufacturers, including Ford (F)Toyota (TM), Stellantis (Stla) and Honda (Hmc) closed above.
Like GM, Ford and Stelllantis thanked Trump for the softer position on car rates.
“Ford welcomes and appreciates these decisions by President Trump, which will help alleviate the impact of prices on car manufacturers, suppliers and consumers,” Ford said in a statement in CNN on Tuesday.
“Stellantis appreciates the pricing rescue measures decided by President Trump,” the president of the company, John Elkann said on Tuesday in a statement.
Stellantis is expected to publish his income from the first quarter on Wednesday, while Ford reports his income on Monday.
This story has been updated with additional reports and context.