US trade policy: US government wants to reduce tariffs on foreign car parts

The US government wants to reduce the impact of US tariffs on the auto industry . According to US government officials, some US tariffs on foreign auto parts for US- made cars will be reduced as early as Tuesday. In addition, the US tariffs on foreign-made cars will be prevented from being stacked on top of other tariffs .

"President Trump is building a critical partnership with domestic automakers and our great American workers," said Secretary of Commerce Howard Lutnick. "This deal is a major victory for the President's trade policy because it rewards companies that manufacture domestically." At the same time, the Trump administration is offering an incentive to automakers that commit to investing in the U.S. and expanding their domestic production.

The Wall Street Journal first reported on a possible reduction in US tariffs on auto parts and cars imported from abroad. A White House official confirmed the report and noted that the move would be made official this Tuesday.

US automobile associations had US President Donald Trump in the last week in a letter asking not to planned to impose tariffs of 25 percent on imported Auto parts tariffs will increase global disrupt the automotive industry supply chain and trigger a domino effect that leads to higher car prices for the consumers and lead to lower sales for retailers and the maintenance and repair of vehicles both more expensive and also less predictable," wrote the Automotive associations, including General Motors, Toyota Motor, Volkswagen and Hyundai represented.