Trump Is About to Change His Stance on Auto Tariffs Again!

Facing a 25% tariff on cars, all car manufacturers are "complaining bitterly." In response, US President Trump said on Monday that he is considering "some kind of tariff exemption" to alleviate the pressure on car companies to reconfigure their supply chains, which is his latest potential adjustment to the tariff policy.

He stated, he is studying the possibility of exempting tariffs on imported cars and parts to give car companies more time to establish production sites in the US.

When asked about a "short-term" tariff exemption in the Oval Office, Trump said, "I am considering some measures to help some car companies that are shifting to using parts produced in Canada, Mexico, and other places. They need a little time. Because they have to produce here (in the US). But they need a little time. So that's the kind of thing I'm talking about."

Previously, Trump imposed a 25% tariff on cars, and starting from May 3, a 25% import tariff on car parts will also take effect. Currently, US car manufacturers are anxiously preparing for this.

An automotive industry executive described Trump's latest remarks as "an acknowledgment that the automotive industry is facing difficulties." Other comments suggested that Trump's latest statement might give US car manufacturers some relief, but it also adds more uncertainty.

Trump has repeatedly argued that his goal is to use tariffs to force companies to move production to the US, thereby boosting employment and the economy. But experts, and even some Republicans, have warned that this policy will lead to a surge in consumer prices.

Previously, analysts predicted that the new tariffs would drive up the prices of new and used cars in the US. Market estimates suggest that the price increase for domestically produced cars in the US would be around $3,000, while for imported models, it would far exceed $10,000.

In the latest interview mentioned above, a reporter asked whether Apple products might be exempted. Trump did not elaborate but continued to defend his changing tariff statements, calling it a sign of flexibility.

He said, "Look, I'm a very flexible person. I don't change my mind, but I'm flexible. You have to do that. You can't stare at a wall; sometimes you have to go around it, under it, or over it."

"Maybe something will happen. I've talked to Tim Cook; I recently helped Tim Cook, and the whole company. I don't want to hurt anyone," he added.

However, Trump's "flip-flopping" on tariff issues is well-known. The latest example is that the US Customs and Border Protection (Customs and Border Protection) only announced last Friday that a series of products would be excluded from the previously announced "reciprocal tariffs," including categories such as communication equipment (smartphones), computers, semiconductor equipment, and integrated circuit devices.

Trump clarified on Sunday that this was only for the subsequent imposition of tariffs on the semiconductor industry. He pointed out that he would soon announce tariffs on semiconductors, but at the same time hinted that there might be exceptions for certain products. On Monday, Trump also said that he expects to impose tariffs on imported drugs in the not-too-distant future.