President Donald Trump is to sign a regulation on cars on Tuesday – said the minister of trade Howard Lutnick. According to new tax regulations, cars assembled in the USA and a minimum of 85 percent of American parts are to be exempt.
As the minister told journalists, new regulations, introduced less than a month after the customs of imported cars, are to encourage car manufacturers to transfer production and the supply chain of car parts to USA.
Until now, cars produced in the US have been covered by a tax depending on what part they consisted of foreign components. Now they are entitled to exemption from customs, if they have at least 85 percent. American parts.
In addition, Lutnick announced that car manufacturers will also receive 15 % Reimbursement of imported parts, the prices of which will increase due to duties. Manufacturers are also to be released from paying other duties, including steel and aluminum and 10 percent. customs duties on most other goods.
Cars at the port of Tilbury PAP/EPA/Neil Hall
Reaction to the fears of automotive concerns
Lutnick admitted that the decision was made after automotive concerns reported concerns about the impact of customs duties on their business. The minister's announcement shows that the 25 % duties for car parts will enter into force as planned on May 3. Poland is one of the largest European exporters of car components and accessories to the USA.
Trump is to sign a regulation during a visit to Michigan commemorating the 100th day of his second term as president. The leader will perform at a rally in Warren in the suburbs of Detroit, the center of the American automotive industry.
Donald TrumpPAP/EPA/JIM LO SCALZO
After introducing customs duties on cars, Stellantis announced that it would temporarily release 900 employees in its plants in Warren and other factories in the country.
Source of the main photo: PAP/EPA/JIM LO SCALZO