A 25 percent tariff on imported auto parts has come into effect in the United States.
The decision to impose a 25 percent tariff on auto parts was made by US President Donald Trump as part of his policy of supporting domestic manufacturing and reassessing trade relations with various partners.
The new tariff took effect today, a month after imposing import tariffs on cars.
On Tuesday, April 29, Trump signed an order that mitigates the impact of his 25 percent import tariffs on the US auto industry.
The measures allow automakers to offset the cost of importing auto parts, with the rebates capped at 3.75 percent of the suggested retail price of all cars they make in the US, decreasing to 2.5 percent in the second year and then being completely eliminated.
In addition, companies will pay the tariff only on imported parts, avoiding additional taxes on steel and aluminum.
On April 2, Trump signed an executive order imposing reciprocal tariffs on imports from various countries. The base tariff rate was set at 10 percent, and higher rates were applied to 57 countries based on the U.S. trade deficit with each individual nation.
