Report: Donald Trump May Ease Restrictions on Automakers

US President Donald Trump is set to offset the impact on tariffs of automobile manufacturers who have been subject to multiple levies. This comes ahead of the planned rally on Tuesday near Detroit to observe Trump’s 100 days in office.

According to The Wall Street Journal, companies who are required to pay 25% tariffs on auto imports won’t have to pay duties on products like steel and aluminum. The administration is also looking forward to allowing reimbursements on foreign auto parts that were set to come into effect from May 3.

Notably, US automakers are among the hardest hit-sectors as tariffs affect imports from Mexico and Canada.

Carmakers based out of Detroit still committed to maintain investments in above-mentioned markets after Trump renegotiated the North American Free Trade Agreement during his first term.

As per analysts, tariffs may result in soaring prices, further affecting US car sales and threatening jobs.

Commerce Secretary Howard Lutnick said Trump was “building an important partnership,” according to the Journal.

“This deal will be a major victory for the president's trade policy by rewarding companies who are already manufacturing domestically, while providing a runway to manufacturers who have expressed their commitment in investing in America and expanding domestic manufacturing,” Lutnick said.

US automakers welcomed the change.

“We're grateful to President Trump for his support of the US automotive industry and the millions of Americans who depend on us,” said General Motors Chief Executive Mary Barra.