Trump plans to exempt automakers from some tariffs

According to the Financial Times, US President Donald Trump plans to exempt automakers from some of the toughest tariffs, in another concession in the trade war after intense lobbying by auto industry executives. The move will exempt auto parts from two tariffs, one on some imports to crack down on fentanyl production and the other on steel and aluminium products, according to two people familiar with the matter. However, Trump's 25% tariff on all imported vehicles will remain in place. Another 25% tariff on auto parts will also remain and will take effect from May 3. Although the US has previously excluded automotive goods from "reciprocal" tariffs on major trading partners, US car companies have been pushing for more exemptions. The concessions would mark an initial victory for the auto industry and another retreat from Mr. Trump's most aggressive tariffs. Current talks are focused on simplifying the process, such as relaxing rules of origin requirements for auto parts, according to people familiar with the talks. The policy shift reflects the Trump administration's pragmatic response to industry-specific pressures while upholding the core position of "America First" trade policy.