The auto industry may receive a temporary reprieve on tariffs on imported vehicles and auto parts.
During a press briefing Monday, President Donald Trump suggested pausing the 25 percent tariff on imported vehicles and the tariff on auto parts, which is set to go into effect May 3.
“I’m looking at something to help some of the car companies, switching to parts that were made in Canada, Mexico and other places. They need a little bit of time cause they are going to make them here,” Trump said in the video shared by the Associated Press.
He did not expand on the plans and the White House has not released any additional information.
The tariffs on auto parts are expected to raise prices in the used vehicle market. The list of parts impacted was recently published in Annex I of the Federal Register Notice. The parts on the list include hoses, tires, suspension, lights, body parts, transmission, engine components and more, based on the Harmonized Tariff Schedule of the United States (HTSUS) numbers included in the order on pages 11 and 12.
