Auto Industry May Receive Tariff Exemption, Indicates White House
President Donald Trump made comments yesterday suggesting the auto industry may be made exempt from tariffs, according to Spectrum News.
A report from Associated Press shared comments from Trump, made to reporters in the Oval Office, stating that automakers have said they need more time to move their supply chains.
“I’m looking at something to help some of the car companies with it,” Trump said Monday. “And they need a little bit of time because they’re going to make them here, but they need a little bit of time. So I’m talking about things like that.
“I don’t change my mind, but I’m flexible,” he added.
The statements suggest that a pause on tariffs for the auto industry. Currently, tariffs on auto imports has taken effect as of April 3, with tariffs on auto parts to begin May 3. Recently, the Auto Care Association put out a statement arguing that auto parts subject to section 232 tariffs are not subject to reciprocal tariffs.
ACA based this on guidance from Sandler, Travis & Rosenberg, the U.S. Customs and Border Protection's website, and Cargo Systems Messaging Service, citing the following passage from CBP’s Section 232 FAQs on Autos: “Parts of passenger vehicles and light trucks are not subject to the reciprocal tariffs, per HTSUS 9903.01.33, effective April 5, 2025.”
Subheading 9903.01.33 exempts parts of passenger vehicles and light trucks that are subject to Section 232 actions, leading ACA to propose that 232 auto parts should only be exempt from the reciprocal tariff if the section 232 tariff is paid.
“Unless and until CBP provides additional clarification or changes to the FAQ language, we believe it is reasonable to claim the exemption of 9903.01.33 for auto parts that are subject to a 232 action,” said ACA.
