- President Trump has hinted at walking back the 25% tariff on automotive imports.
- He reportedly acknowledged companies need more time to shift production to the U.S.
- There’s no word on when the tariffs could be dropped or how long the relief would last.
In the latest sign the White House is making things up on the fly, President Trump has suggested the United States might lift its 25% tariff on automotive imports. The tax has already resulted in price increases, production halts, and the reported death of the Volvo S90.
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According to the Associated Press, Trump told reporters he’s “looking at something to help some of the car companies” with tariffs. He went on to say automakers need a “little bit of time” to shift production back to the United States.
More: Detroit Is Begging Trump To Stop As His Import Tariffs Threaten Thousands Of Auto Jobs
There’s no word on when auto tariffs could be paused, which countries could benefit, and how long a reprieve could last. However, any improvement would be welcomed by automakers and consumers who are both looking at thousands of dollars in added costs.
Despite being yet another reversal, Trump reportedly said “I don’t change my mind, but I’m flexible.” Of course, it can take years to shift production from one location to another. This typically only occurs when new generations are introduced, but it seems unlikely that the administration would be willing to wait the roughly eight to ten years that vehicles typically live before redesigns.
In the short term, companies could try to boost U.S. production, but the numbers likely wouldn’t be very substantial. In BMW’s case, it’s considering increasing production at their Spartanburg plant by 80,000 units.
We’ll presumably learn more in the coming days, but it appears automaker and industry group pressure has gotten through to the President. However, it remains to be seen if he’ll actually follow through with their wishes.
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