After months of promising a huge tariff of 25% on imported parts, Trump backed down. The White House announced a major change today: it will ease the impact of auto tariffs. Specifically, it will exempt foreign parts used in cars assembled in the United States. In addition, the administration will avoid double-taxing steel and aluminum.
All of this comes just one day before Trump’s visit to Michigan — the birthplace of the American auto industry — where he will mark his first 100 days in office. Coincidence? Definitely not.
The decision was made after strong pressure from the automotive industry. Automakers such as GM, Toyota, Volkswagen and Hyundai sent letters to the White House warning of the risks. According to the companies, the tariffs — which were scheduled to come into effect on May 3 — could paralyze production lines, bankrupt suppliers and, consequently, make cars more expensive for the end consumer.
Therefore, even in the face of protectionist discourse, the retreat shows how economic and strategic factors continue to directly influence American trade policy.
The Commerce Secretary called the move a “victory for trade policy.” But what we saw was a victory for common sense: Trump realized that tightening the law too much could blow up the very industry he claimed to protect.
The new rules will refund amounts already paid and prevent local automakers from suffering double sanctions. And of course, the message remains the same: America First. But now with a little more caution — because in practice, the automakers were grateful for this retreat.
Ultimately, Trump continues to use tariffs as a negotiating tool. But he now knows that if he pushes too hard, the market will freeze. And no one wins an election with an assembly line at a standstill.
Source: Marta Guimarães | Notícias Agrícolas
