- Trump will sign a decree concerning car rates on Tuesday afternoon. The agreement should prevent the prices of “stacking”, which would benefit manufacturers. Consumers will always see price increases, however.
The automotive industry can breathe a little more easily with regard to prices.
President Trump plans to sign a decree that will give car and truck manufacturers a certain relief of import prices, in the middle of the fear that these samples would have an impact on American factories.
Although 25% prices will remain in place on imported vehicles and automotive parts, they will be modified to ensure that they will not “pile up” other prices, such as those under aluminum or steel. Car manufacturers will not have to pay prices on these widely used products.
At the same time, car manufacturers will be reimbursed for part of the cost of prices on certain imported automotive parts. This remuneration will operate at 3.75% of the value of a car made in the United States for the first year, 2.5% of the value of the second year, then it will be eliminated, according to a report in The Wall Street Journal.
The white house press secretary Karoline Leavitt said in a Tuesday briefing that Trump would sign a prescription for car prices later this afternoon before going to Michigan for a rally observing her first 100 days in power. However, she did not enter into the details of the order.
The 25% rate on imported cars entered into force on April 3. The price on imported parts should come into force on Saturday May 3.
The automotive industry is pressure on Trump administration to relieve prices for weeks. In a Letter to the White HouseA collection of lobbyists, including the Alliance for Automotive Innovation, wrote that Trump, “said an opening to reconsider 25% prices of the administration on imported automotive parts – similar to recently approved price reduction for consumer electronics and semiconductors. It would be a positive development and welcome relief.”
Even with the block stacking block, consumers can expect to pay thousands of dollars more for new and used cars in the coming months. Repair costs and insurance premiums will also probably increase.
This story was initially presented on Fortune.com
