White House Tariff Exemption for Automakers

SOURCE www.cnbc.com
The White House announced a one-month tariff exemption for automakers following a call with heads of major companies. The exemption applies to vehicles that comply with the USMCA rules of origin.

Key Points

  • Automakers requested exemption during a call with President Trump
  • Tariffs on automakers complying with USMCA rules of origin delayed by one month
  • Exemption allows for further discussions between White House and automotive industry

Pros

  • Automakers granted a one-month delay on tariffs
  • Shares of automakers increased following the announcement

Cons

  • Uncertainty whether automotive parts will also be exempt