The President of the United States, Donald Trump, plans to exempt auto parts from tariffs imposed on imports from China in order to counteract fentanyl production, according to sources cited by the Financial Times (FT). Steel and aluminum will also be exempt from tariffs.
According to information provided by the FT, these exemptions will not affect the 25 percent tariff imposed by Trump on all imports of vehicles manufactured abroad. Additionally, an extra 25 percent tariff on auto parts will remain in effect, set to come into force from May 3.
In the words of one of the sources: "The exemption from tariffs on auto parts is part of the broader strategy to address the fentanyl problem and protect national security." This move aims to balance the protection of the domestic automotive industry with the necessity to regulate the flow of fentanyl coming from China.
The measure will create a significant impact on the supply chain of the automotive industry, especially for those companies that depend on auto parts imports from China. It is expected that the decision to exempt auto parts from these tariffs will be met with differing opinions both nationally and internationally.
Further developments in this situation are awaited to gain more details on how these exemptions will be implemented and what their impact will be on the automotive market and the fight against fentanyl production.
