"President Donald Trump is giving domestic automakers additional relief from tariffs on auto parts, extending what was supposed to have been a short-term rebate until 2030. It's part of a proclamation Trump signed Friday that also made official a 25% import tax on medium and heavy duty trucks, starting Nov. 1. The action reflected the administration's efforts to use tariffs to promote American manufacturing while also trying to shield the auto sector from the higher costs that Trump's import taxes have created for parts and raw materials."
"The amended action provides a rebate of 3.75% relative to the sales price of a domestically assembled vehicle. That figure was reached by putting the 25% import tax on parts that make up 15% of a vehicle's sales price. Multiplying those two percentages together is equal to 3.75%. The rebate will also now be offered to manufacturers of trucks and engines, officials said."
President Donald Trump extended a rebate on tariffs for auto parts through 2030 while imposing a 25% import tax on medium and heavy-duty trucks, effective Nov. 1. The move aims to promote domestic manufacturing and reduce the auto sector's exposure to higher parts and raw material costs from prior import taxes. The rebate, calculated at 3.75% of a domestically assembled vehicle's sales price, reflects a 25% parts tax applied to parts equal to 15% of vehicle price. The rebate now covers truck and engine manufacturers, while buses face a 10% tariff and USMCA-covered imports are excluded.
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