The United States’ trade war with China appears to be de-escalating, but automotive-specific tariffs remain.
U.S. officials met with Chinese counterparts this past weekend in Geneva, culminating in a 90-day pause and the potential for a substantial decrease in current tariffs. Due to the talks, tariffs will sit at 30% from May to August instead of the previous 145%. China will tariff U.S. imports at 10%.
According to The Budget Lab, a federal policy research center, this pause does not impact the 25% tariff on automobiles and auto parts, whether from China or not. The White House extended some relief for U.S.-made vehicles on April 29. The administration reduced tariffs on parts that make up 15% of the value of automobiles assembled in the U.S. for one year, plus the “equivalent to 10% of that value for an additional year.”
