#DinnerWithTrump Recently, the Financial Times (FT) reported that the Trump administration is considering reducing taxes on auto parts imported from China. According to sources close to this plan, auto parts will be exempt from the tariffs that President Donald Trump imposed on imports from China to prevent the flow of fentanyl into the U.S. Notably, this plan is also expected to allow manufacturers to avoid steel and aluminum tariffs through a mechanism called "destacking". According to FT, the 25% tariff on all imported cars manufactured abroad will remain in place, and the 25% tariff on auto parts is still expected to take effect on May 3.
According to the above information, the stocks of American car manufacturers have risen sharply in after-hours trading: General Motors increased by up to 6.1%, Ford Motor rose by 3%, and the American stock of Stellantis even increased by 6.8%. However, in a later exchange in the Oval Office, Trump seemed to contradict this report. When directly asked about changing car taxes, the U.S. President not only denied it but also hinted at the possibility of raising taxes on the Canadian auto industry. "No, we are not considering that right now, but at some point, it may go up," Trump clearly stated. "Because, once again, we really don't want Canada to make cars for us. To put it plainly, we want to make cars ourselves, and now we are equipped to do that."