KATHMANDU: U.S. President Donald Trump is considering a plan to reduce tariffs for car makers that build vehicles in the United States, according to Senator Bernie Moreno and industry officials.
The move could lower costs for major companies like Ford, Toyota, Honda, Tesla and General Motors. Moreno said the goal is to reward brands that assemble cars in the country and support American workers.
The Commerce Department had earlier offered a 3.75% import adjustment for U.S. made vehicles until April 2026. The import adjustment is a type of tax relief for cars made in the United States. It helps cover the extra cost of imported parts used in those vehicles. Trump is now thinking of keeping this relief for five years and adding U.S. made engines to the plan.
Automakers’ shares climbed following the Reuters report. Ford shares rose 3.7%, Stellantis gained 3.2% and GM went up 1.3%.
A White House official said the government aims to boost vehicle and parts production in the U.S. but noted that no final decision has been made yet.
Trump had earlier imposed 25% tariffs on imported cars and parts worth $460 billion a year. Some of these tariffs were later reduced for Japan, UK and the EU.
A final decision on the relief plan is expected soon.
