‘Better than nothing’: Trump temporarily softening impact of automotive duties

What’s happening?

U.S. President Donald Trump has signed executive orders aimed at providing temporary relief to the automotive industry during his ongoing global trade war.

“We just wanted to help them endure this little transition, short term,” Trump told reporters at the White House on April 29.

“If they can’t get parts — you know, it has to do with a very small percentage — we didn’t want to penalize them.”

Automakers that finish their vehicles in the U.S. will reportedly be offered a rebate on imported auto parts that is equal to 15 per cent of a vehicle’s retail price. The rebate would drop to 10 per cent the following year.

Companies paying the automobile duties won’t have other levies, including the ones on steel and aluminum, stacked on top.

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Canadian auto industry officials skeptical

David Adams, CEO of Global Automakers of Canada, is doubtful that the president’s temporary relief measures will result in meaningful change.

“I don’t know that it’s really going to do anything. I mean, it’s better than nothing,” Adams told The Globe and Mail during a phone call.

“I was hoping that they might back off of the auto-parts [duties], but it looks like that’s still going to move ahead on May 3 unless there’s some other intervention between now and then.”

Flavio Volpe, head of the Automotive Parts Manufacturers’​ Association, claimed that Trump’s concessions don’t go far enough.

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