Media reports indicate that after strong lobbying by Auto Manufacturers executives in recent weeks, President Trump plans to exempt some of the harshest tariffs facing Auto Manufacturers. Analysts believe this is yet another concession from Trump in the trade war.

Some media outlets have reported that Trump intends to exempt certain tariffs on Auto Parts, including tariffs imposed on imported Steel and Aluminum products. Another media outlet stated that the White House has confirmed that Trump plans to exempt some tariffs on Auto Manufacturers.

Insiders told the previous media that this measure is referred to as a "layered treatment" of the tariffs (destacking). However, this exemption does not include the 25% tariff on imported complete vehicles and does not affect the 25% tariff on imported Auto Parts set to take effect on May 3.

Analysts believe that this concession will be an initial victory for the Industry and that Trump is once again retreating from his most aggressive tariff policies due to concerns that these tariffs would drive up car prices in the USA, disrupt supply chains, and lead to job losses.

After the news broke, auto stocks surged in Post-Market Trading. $General Motors (GM.US)$ At one point, it surged by 6.1% in Post-Market Trading. $Ford Motor (F.US)$ It once rose 3% in Post-Market Trading. $Stellantis NV (STLA.US)$ It once rose 6.8% in Post-Market Trading, but the stock price later fell.

According to reports, in the past week, Auto Manufacturers' Company Executives have intensified their criticism of tariffs. Stellantis Director John Elkann warned that "Trump's trade policy is putting the US and European auto industry at risk."

Another senior Auto Industry executive stated:

"We have urged the government - do not hit us with these additional tariffs again and again... because it truly endangers the health of our entire industry."

Additionally, this tariff exemption is the latest sign of Trump providing a "carve-out" for specific industries after his tariff plans this month triggered a significant sell-off in Global markets and external warnings of a potential recession in the USA.

On April 2 local time, according to CCTV News, the White House in the USA issued a statement that Trump will impose a 10% "baseline tariff" on all countries. On April 9 local time, the White House announced a 90-day suspension of implementation, but there is still the risk of triggering a comprehensive global trade conflict.

According to the Global Times, late at night on April 11 Eastern Time, the U.S. Customs and Border Protection released a notice on its official website: the federal government has agreed to exempt "reciprocal tariffs" on electronic products such as Smart Phones, computers, and chips; the exempt products apply to electronic products entering the USA after April 5, and paid "reciprocal tariffs" can seek refunds.

Last week, Trump also stated that he would provide "help" for the Auto Industry. He had previously mentioned that as long as companies comply with the 2020 US-Mexico-Canada Agreement (USMCA) regulations, they could receive better treatment for importing Autos from Mexico and Canada.

For complete vehicles and Auto Parts that meet USMCA agreement terms, only the "non-American content" portion will be subject to a 25% tariff. Insiders told the media that the current focus of negotiations is mainly on how to simplify the execution of tariffs, such as simplifying the rules of origin for Auto Parts to streamline the implementation process.

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Editor/Rocky