[Text/Observer Network Qi Qian] On April 14 local time, US President Trump said at the White House when meeting with El Salvadorian President Bukele that he hoped to "help some car companies" so that manufacturers would have time to adjust their supply chains. Previously, the Trump administration had imposed a permanent 25% "tariff" on imported cars. As a result of this impact, Audi, Jaguar Land Rover and other car manufacturers have suspended deliveries of vehicles to the United States.
Trump did not elaborate specifically, but the Associated Press (AP) believed that he might be hinting at a temporary exemption from car tariffs. CNBC reported that the stock prices of car manufacturers closed higher on the day.
"I am considering some measures to help some car companies," Trump told reporters.
Trump said that car manufacturers need time to relocate production from Canada, Mexico and other places. "They need a bit of time. They need to produce in the United States, but they do need a little time. So what I'm talking about are these things."
Trump also claimed on the same day: "I won't change my mind, but I'm flexible."
On April 14, Trump met with El Salvadorian President in the White House Video screenshot
The report described an industry executive as describing Trump's remarks as him "acknowledging the difficulties facing the automotive industry."
Matthew Blount, chairman of the American Automotive Policy Council (an industry association representing Ford, General Motors and Stellantis), said that the organization agreed with Trump's goal of increasing domestic production. However, he also stated: "People are increasingly aware that broad tariffs on components may undermine our common goal of building a prosperous American automotive industry, and many supply chain transformations require time."
AP pointed out that Trump's latest statement suggests another reversal of his tariff policy. Recently, Trump's massive imposition of import taxes has triggered panic in financial markets and deep concerns among Wall Street economists about the possibility of a US economic recession.
On March 27, when Trump announced a 25% tariff on imported cars, calling it a "permanent" tariff, the tariff officially took effect in early April. Subsequently, Trump announced "reciprocal tariffs" for the entire world, triggering massive fluctuations in global stock markets. With the economic and political backlash caused by Trump's tariff policies, his tough stance on trade issues has become increasingly blurred.
Last week, after bond market selling drove up US debt rates, Trump announced that he would suspend "reciprocal tariffs" for 90 days while maintaining a 10% benchmark rate, and increase China's tax rate to 145%. After continued selling of US Treasury bonds, Trump then temporarily exempted electronics from some tariffs, later denied this was an "exemption," and threatened to impose separate taxation.
"It's hard to figure out what the rules will look like five days from now." A Democratic senator commented on Trump's tariff policies. Under widespread criticism in the market and strong countermeasures from China, the Trump administration has begun to lose its footing: after loudly imposing tariffs, he adjusted the tariff policy three times within two days, and this chaotic farce seems far from over.
At a press conference on the 14th, Trump also mentioned that he recently spoke with Apple CEO Tim Cook and "helped" him. AP noted that Trump's tariffs on China have severely affected Apple. Many Apple products, including iPhones, are assembled in China.
The report stated that even if the policy of exempting electronics is temporary, this "temporary reprieve" has given Apple some breathing room. Dan Ives, an analyst at Wedbush Securities, said that Apple's situation is clearly much better than before, but he warned that there remains "significant uncertainty, chaos and confusion" in Trump's policies.
AP said that Trump claims to be "flexible," but this has exacerbated people's uncertainty and confusion about his intentions and ultimate goals. On the 14th, the S&P 500 index rose 0.8%, but it is still down nearly 8% year-to-date. The yield on 10-year US Treasury bonds rose to about 4.4%.
Carl Tannenbaum, chief economist at Northern Trust Global Financial Services, described Trump's frequent policy reversals as causing him severe cervical strain, possibly requiring a neck brace. Tannenbaum warned: "The uncertainty in Trump's policies could cause irreversible damage to consumer, business, and market confidence."
In response to Trump's car tariffs, automakers made different responses. According to CNBC reports, major manufacturers such as Ford and Stellantis have announced temporary agreements with employees. General Motors increased production in some areas of the United States.
All Audi cars sold in the US are produced outside the country German media chart
However, German Audi and British Jaguar Land Rover and other car manufacturers have suspended deliveries of vehicles to the United States. It is understood that Audi does not have its own production plant in the United States and all vehicles depend on imports.
Trump's tariff stick has dealt a huge blow to the automotive industries of his European allies. On April 14, Maros Sefcovic, EU Commissioner for Trade and Economic Security, posted on social media that he represented the EU in trade negotiations with US Commerce Secretary Lutnik and US Trade Representative Jamiezon Greer. Sefcovic still called for a fair agreement with the United States to achieve "zero tariff exchange."
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Original source: https://www.toutiao.com/article/7493333519142306316/
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