Washington (Reuters) -US President Donald Trump is considering a significant reduction in customs duties for American automotive production, Republican senator Bernie Moreno and officials of the automotive industry on Friday.
“The message addressed to car manufacturers around the world is as follows: if you do the final assembly in the United States, we will reward you,” said Bernie Moreno during an interview.
“For Ford, Toyota, Honda, Tesla, GM, who are almost in this order the first five national car manufacturers, customs duties will have no impact.”
In June, the Commerce Department declared that it planned to reimburse manufacturers 3.75% of the retail price of a car assembled in the United States until April 2026, then 2.5% the year after, to compensate for customs duties on imported automotive parts.
Donald Trump plans to maintain this reimbursement of 3.75%, and to extend it to five years and to the production of American engines, said Bernie Moreno and officials of the automotive sector.
“It is obviously the president to decide, but it is absolutely delighted that we are now creating an incitement system that really separates importers from those who make in America,” added Bernie Moreno.
Asked about the proposal, an official of the White House said that the administration of Donald Trump “undertakes to adopt a nuanced and multifaceted approach to guarantee the national production of cars and spare parts”.
“However, as long as no official action is signed by the president, any discussion on the administration policy is speculative,” added the official.
(David Shepardson report, Kate Entringer)
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