President Trump indicated Monday he is considering tariff exemptions to give relief to car companies as they work to reconfigure their supply chains, marking the latest potential adjustment to his tariff policies.
“I’m looking at something to help some of the car companies where they’re switching to parts that were made in Canada, Mexico and other places,” Trump said when asked in the Oval Office about “short-lived” tariff exemptions. “And they need a little bit of time. Because they’re going to make them here. But they need a little bit of time. So I’m talking about things like that.”
Asked about potential exemptions for Apple products, Trump did not get into specifics but defended his shifting tariff announcements 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 just can’t have a wall and you’ll only go — no, sometimes you have to go around it, under it or above it,” Trump said before name-dropping the Apple CEO. “There’ll be maybe things coming up. I speak to Tim Cook; I helped Tim Cook recently, and that whole business. I don’t want to hurt anybody.”
The president’s suggestion of looming exceptions to help car companies would be the latest adjustment to what has already been a constantly changing approach to tariffs.
Trump has in recent months announced tariffs on Canada and Mexico only to delay them for a month. He then imposed tariffs on Canada and Mexico, but then announced many products covered under a 2020 trade agreement, including automobiles, would be exempt.
The president also announced a 10 percent baseline tariff on all imports, as well as higher “reciprocal” tariffs on dozens of countries, including Japan, South Korea, China, India, Thailand and the European Union. But Trump has since announced all countries other than China will have their “reciprocal” tariffs reduced to 10 percent for 90 days to allow for negotiations.
On top of that, Trump has announced sector-specific tariffs on automobiles and steel and aluminum. He told reporters Sunday that additional tariffs on semiconductors, which could cover various electronic devices, would be announced in the coming days.
Trump has repeatedly argued that his use of tariffs would compel companies to move their production to the United States, boosting jobs and the economy. Experts and even some Republicans have warned that the policy will lead to a spike in prices for consumers.
