Trump temporarily eases tariffs for automakers for two years

U.S. President Trump has taken a step back to ease some of his tariffs on the auto industry.

Marking his first 100 days in office, his administration seems to be sending a message to America when it comes to trade negotiations with other countries.

Moon Hye-ryeon reports.

U.S. President Trump signed two executive orders on Tuesday, rolling back portions of the auto tariffs announced earlier this month.

The changes modify the 25-percent tariff on fully assembled vehicles, as well as additional levies on auto parts that are set to take effect in stages starting May 3rd.

The first executive order introduces a tariff offset for parts used in vehicles assembled in the U.S. — 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 intended to give automakers more 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."

Under the second executive order, automakers will be shielded from so-called "stacked tariffs."

That means companies already paying the levy on imported vehicles and parts will not have to face additional steel and aluminum tariffs on imports from Canada and Mexico.

The administration says the goal is to avoid compounding unnecessary costs.

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, South Korea's Finance Ministry rejected the remarks and reaffirmed that the country is committed to following the proper procedures and not rushing the negotiations.

Moon Hye-ryeon, Arirang News.