Washington, April 29, 2025 – Some tariff relief is on the way for automakers after the White House confirmed the US will act on Tuesday to alleviate some duties on the industry.
Companies already paying tariffs on imported vehicles won’t also be charged other levies, such as on steel, officials said.
Duties on foreign parts will also be eased.
The climbdown comes after intense lobbying from the auto industry, which warned of a huge hit to sales and price hikes for consumers in the face of 25% tariffs on vehicle and parts imports.
Investors are also focused on US and China tariff tensions amid signs of de-escalation, even as President Trump sent mixed signals on the state of relations.
On Monday, it was reported that Asian economies like South Korea, Japan, and India are taking the lead in trade talks with Trump’s administration, while China pledges additional support fortariff-hit exporters.
Trump’s tariff war has disrupted Washington and Wall Street for nearly a month, and if it continues, the impact will soon hit closer to home.
Since the US raised tariffs on China to 145% in April, cargos shipments have dropped dramatically, with estimates suggesting a 60% decline.
By mid-May, businesses will need to restock, and retailers like Walmart and Target have warned of empty shelves and rising prices. Experts predict major supply shortages and layoffs in sectors like trucking, logistics, and retail.
Reports emerged last week that China quietly rolled back tariffs on some US semiconductor products, easing pressure on its tech sector, along with certain US pharmaceuticals.
Treasury Secretary Scott Bessent said Monday that those moves showed progress, saying it was “up to China” to deescalate tensions.
China has struck a publicly defiant tone and Trump sowed confusion by claiming that he had spoken with Chinese President Xi Jinping, which Beijing denied.
Trump added to the mixed messages later Friday when he said that he would drop tariffs on China unless Beijing gives the US something “substantial” in return.
Even as the bluster continued, the signs of a walk back have boosted Wall Street hopes for broader tariff de-escalation after an intense back-and-forth between the world’s two largest economies.
China in recent weeks has raised duties on imports of US goods to 125% from 84%, while US tariffs on Chinese imports have ballooned on most imports to 145%. (Bloomberg)
