US President Donald Trump took two important decisions on Tuesday to mitigate his trade policy. While he was committed to his hundredth day, he announced relief at the controversial car rates and presented his first successful international trading deal. Reuters news agency reports this.
Lighting for car industry
In an attempt to give the American car industry breathing space, Trump relaxes the input rates on car parts. Until April 2026, manufacturers will have the opportunity to compensate in import duties up to 3.75 percent of the suggested retail price produced in the US. In addition, they can exempt from extra taxes until the end of April 2027 to 2.5 percent of their production.
This step comes when a rate of 25 percent threatens to go into imported car parts. The industry previously warned that such measures can seriously disrupt the integrated production network between the US, Canada and Mexico. “We wanted to help them … If they can’t get parts, we don’t want to punish them,” said Trump.
International deal on the road
At the same time, Minister of Trade Howard Lutnick announced that he has concluded a first trade agreement with a foreign partner. Although the name of the country is not yet known, India seems a serious candidate. Trump spoke out about the country:
“India is doing well. I think we will close a deal with India.”
The announcement led to rest on the markets. The S&P 500 rose by 0.6 percent, the sixth win in a row and the longest series since November. Lutnick reports that it is currently waiting for “approval from the Prime Minister and the Parliament” of the not mentioned country. Negotiations also seem to start with other countries.
Is unrest
Yet the unrest within the industry remains felt. Car manufacturer GM withdrew his prospects for the year, and postponed a planned analyst meeting pending more clarity about the tariff adjustments. The Canadian Chamber of Commerce called the relaxation inadequate and warned of persistent uncertainty that companies chases away.
According to a poll by Reuters/Ipsos, only 36 percent of Americans approve Trump’s economic policy, the lowest level during his current and previous term of office. It is expected that the US economy has only grown by 0.3 percent in the first quarter of 2025, a sharp decrease compared to the 2.4 percent at the end of 2024. The combination of commercial stress, high costs and inflation will continue to exert pressure on the confidence of both consumers and companies.
Source: https://newsbit.nl/trump-versoepelt-autotarieven-en-sluit-eerste-buitenlandse-handelsdeal/
