As Lutnick explained, the change of regulations is aimed at encouraging car manufacturers to carry production and supply chains to the United States. Until now, the amount of duties depended on the participation of foreign components in the vehicle – now, if at least 85 percent. Parts come from the USA, the car will not be covered by tax.
In addition, the government provides for a 15 % reimbursement of costs for companies that need to import more expensive components covered by the duties. Manufacturers are also to cover the exemption from other customs fees, including those regarding steel, aluminum and most goods with a 10 % rate.
The automotive industry expressed concerns
Lutnick admitted that changes are a response to the fears reported by the automotive industry, which signaled possible difficulties related to the new customs policy. Despite these reliefs, the 25 % duties for car parts are to enter into force as planned on May 3. For Poland, which is one of the largest suppliers of these components to the USA, change can have significant consequences.
President Trump is to sign a new regulation during a visit to Michigan, where he will celebrate the 100th day of his second presidential term. The ceremony will take place in Warren – a city recognized as the heart of the American automotive industry.
Earlier, after preliminary customs, Stellantis informed about the temporary dismissal of 900 employees in factories, including in Warren.
