President Donald Trump is reportedly considering exemptions for automakers from certain tariffs, according to a White House confirmation to CNBC. This follows reports that Trump plans to exempt auto parts from tariffs on imports from China aimed at countering fentanyl production, as well as levies on steel and aluminum. These exemptions would differ from the scheduled 25% tariffs on imported vehicles and auto parts set to take effect by May 3. Industry shares saw slight gains in after-hours trading. Trump also mentioned potentially increasing tariffs on Canadian car imports. Despite some exemptions, the automotive industry still faces significant tariffs, including 25% levies on steel and aluminum and a 25% tariff on all imported vehicles. The upcoming May 3 tariffs on auto parts add to these burdens. Six major U.S. automotive policy groups have united to lobby against these tariffs, citing concerns over production risks and supplier distress. General Motors CEO Mary Barra emphasized the need for regulatory clarity and consistency to effectively compete globally.
— new from CNBC
