Trump considers reducing Chinese car part tariffs: FT

[NEW YORK] The Trump administration is considering reducing tariffs on auto parts ahead of a May 3 deadline that has drawn the ire of global carmakers, according to the Financial Times (FT).

The proposal would exempt car parts from tariffs US President Donald Trump has levied on imports from China to stop fentanyl production, sources familiar with the plan told the newspaper. The plan would also let parts makers avoid tariffs for steel and aluminium, referred to as “destacking”, the FT said.

Later in the Oval Office, Trump was asked if he was considering changes to auto tariffs and indicated he was not – while also suggesting he might even increase levies on the Canadian auto sector.

“No, we are not considering it now, but at some point it could go up,” Trump said. “Because, again, we don’t really want Canada to make cars for us. To put it bluntly, we want to make our own cars, and we are now equipped to do that.”

A 25 per cent tariff on all imports of foreign-made cars would remain in place and a 25 per cent tariff on car parts will still be imposed on May 3, the report said. The White House did not respond to a request for comment on Wednesday (Apr 23).

General Motors rose as much as 6.1 per cent in aftermarket trading, while Ford Motor gained 3 per cent and Stellantis’ US shares added 6.8 per cent. BLOOMBERG