Trump Administration Weighs Tariff Relief on Auto Parts Before May 3 Deadline:

The Financial Times has cited sources stating that the Trump administration is considering reducing tariffs on imported auto parts. This comes amidst rising concern from global car makers ahead of the deadline set for May 3.

The outline of the plan suggests that tariffs on auto parts will not be applied, which marks a departure from previously set tariffs on Chinese imports. The earlier policies were formulated to coerce China over several matters such as fentanyl drug trade. Furthermore, the plan might allow certain OEMs to avoid Sections 232 steel and aluminum quotas through the so-called “destacking” non-rate process.

Trump Comments Cast Doubt on Immediate Changes

Carried out discussions aside, the President maintained his position over the auto tariffs, saying there won’t be any imminent changes to the rest of the tariffs: “We are not looking at auto tariffs at the moment.” He added that there are plans to impose more tariffs on vehicles manufactured in Canada in the not too distant future.

“No, we’re not thinking about them now, but at some point they could be raised,” said Trump. “Because, again, we don’t truly wish for Canada to be making cars for us. To be blunt, we would like to fabricate our cars and we have the resources to do so.”

The FT says that a 25% tariff on foreign-made cars will still apply, in addition to another 25% tariff on their components which will come into effect on May 3. There was no comment from the White House regarding the report.

Investor Response to Tariff Relief Cconjecture

Ford Motor Co. saw their stock price increase by 3%, while Stellantis’ U.S. shares rose by 6.8%. General Motors also experienced a surge of up to 6.1% during after-hour trading; these gains came in response to rumors regarding potential concession on tariff restrictions.