White House softens tariffs blow on automakers

Alsharq Tribune- World News 

US President Donald Trump announced on Tuesday that he is relaxing some of his automobile tariffs to support manufacturing in America. The measure would give companies more time to move production back to the US.

Trump said his 25 percent tariffs on imported vehicles will remain in place. However, the government will reimburse carmakers for some of the money they pay for foreign parts.

Trump

to reporters that he and his administration "wanted to help" automakers during the transition. He said, "If they can't get parts, we didn't want to penalize them."

The offset will be offered for two years. In the first, it will be the equivalent of 3.75 percent of the sticker price of domestically built cars. That will drop to 2.5 percent in the second year and will be phased out in the third. The administration hopes the change will push companies to make auto parts in the US.

Trump imposed the 25 percent tariffs on foreign-made cars earlier this month. They will be expanded to include parts by Saturday.

Automakers have been voicing concerns. They say the tariffs could raise prices, reduce sales and make US production less competitive around the world.