President Trump said Monday that he is considering tariff exemptions to provide relief to auto companies as he works to restructure supply chains in the latest potential adjustments to tariff policy.
“I’m looking at something to help some of the car companies switching to parts made in Canada, Mexico and elsewhere,” Trump said when asked about the “short-lived” tariff exemption in his oval office. “And they need a little time because they’re going to make them here. But they need a little time, so I’m talking about that.”
When asked about a potential exemption for Apple products, Trump did not enter into details, but defended his changing tariff announcement as a sign of flexibility.
“Look, I’m a very flexible person. I don’t change my mind, but I’m flexible. And you have to be. You can’t just have a wall, you just go – no, sometimes you have to go under it,” Trump said. “Maybe things will come. I’ll talk to Tim Cook. I recently helped Tim Cook and the whole business. I don’t want to hurt anyone.”
The president’s proposal on looming exceptions to support automotive companies will be the latest adjustment to what was already a constantly changing approach to tariffs.
Trump has announced tariffs in Canada and Mexico by just a month delay in the last few months. He then imposed tariffs on Canada and Mexico, but announced that many products covered by the 2020 trade agreement, including cars, will be exempt.
The president also announced a 10% baseline tariff on all imports and a higher “mutual” tariff in dozens of countries, including Japan, South Korea, China, India, Thailand and the European Union. However, Trump has since announced that he will reduce “mutual” tariffs to 10% over 90 days for 90 days to allow all countries other than China to negotiate.
In addition to that, Trump has announced sector-specific tariffs on automobiles, steel and aluminum. He told reporters on Sunday that additional tariffs on semiconductors that could cover a variety of electronic devices will be announced in the coming days.
Trump repeatedly argued that his use of tariffs would force businesses to move production to the US, boosting work and the economy. Even experts and some Republicans have warned that the policy will lead to a surge in consumer prices.
