US President Donald Trump answers questions from the White House press corps prior to leaving for a trip to Norfolk. Andrew Leyden/ZUMA Press Wire/dpa
US President Donald Trump has extended tariff concessions on cars produced in the US with imported components until 2030. Manufacturers can receive a refund of up to 3.75% of the sales price of their vehicles.
The measure was originally set to expire in 2027, with the refund percentage falling to 2.5% from the second year onwards. Trump imposed tariffs of 25% on imported cars and components earlier this year.
The president has now also announced tariffs on imports of trucks and buses into the US. The tariff on trucks and components for trucks is 25%. As with cars, manufacturers can receive 3.75% of the sales price back for vehicles built in the US until 2030.
Trump pointed out that around 43% of trucks sold in the US are imported. The tariff on buses has been set at 10%.
By extending the concessions, Trump is responding to concerns raised by US manufacturers such as Ford and General Motors. They saw the trade agreement with Japan, which set a 15% tariff on vehicles built there, as problematic for US industry as vehicles assembled in the US contain 40% to 50% imported components, which are subject to 25% tariffs.