Trump temporarily eases tariffs for automakers for two years

U.S. President Donald Trump has penned an executive order that allows for a slower implementation of tariffs on autos and their parts to offer carmakers more time to boost manufacturing in the U.S.

Shin Ha-young has details.

The U.S. government has decided to ease the tariff burden on the auto industry for two years.

President Donald Trump signed an order Tuesday to temporarily ease tariffs on auto parts for companies that manufacture cars in the U.S.

The move came after the Trump administration began imposing 25 percent tariffs on fully built vehicles, which took effect on April 3rd.

Tariffs on auto parts are set to be implemented in stages on May 3rd.

The new measure provides a tariff offset for parts in U.S.-assembled vehicles, equaling 3-point-7-5 percent of the retail price in the first year and 2-point-5 percent in the second year.

These percentages correspond to a 25 percent tariff applied to 15 percent of the vehicle's value in the first year and 10 percent in the second year.

Trump said the measure is meant to give automakers time to produce cars in the U.S.

"We just wanted to help them during this little transition, short term, and during this little, if they can't get parts, you know, it has to do with a very small percentage, if they can't get parts, we didn't want to penalize them."

Meanwhile, U.S. Treasury Secretary Scott Bessent said Tuesday that tariff talks with South Korea are beginning to take shape, although he did not provide further details.

"I could see the contours of a deal with the Republic of Korea coming together. And then we've had substantial talks with the Japanese."

When asked how domestic issues in South Korea and other trade partners are affecting trade talks, Bessent stated that these countries want to have a "framework of a deal" in place before their elections.

However, Seoul's finance ministry rejected the remarks and reaffirmed that the country is committed to following the proper procedures and not rushing the negotiations.

U.S. Commerce Secretary Howard Lutnick told CNBC on Tuesday that he had reached a deal with one country that should permanently ease the reciprocal tariffs Trump plans to impose.

Lutnick declined to name the country, saying the deal was awaiting local approval.

Based on remarks from U.S. officials, India is seen as the country closest to reaching a deal on tariffs.

Bessent said in a briefing that two countries are "very close" to a breakthrough.

Shin Ha-young, Arirang News.