US auto tariffs: Lutnick says ‘deal’ has been reached with automakers

New York
CNN
 — 

Commerce Secretary Howard Lutnick appeared to confirm reporting on​ Monday evening that a deal has been reached with automakers to​ ease tariffs.

“This deal is a major victory for the President’s trade policy by rewarding companies who manufacture domestically, while providing runway to manufacturers who have expressed their commitment to invest in America and expand their domestic manufacturing,” Lutnick said in a statement to CNN.

Lutnick’s comments came after the Wall Street Journal reported earlier that President Donald Trump is set to announce a new tariff structure for cars that avoids stacking them on top of other tariffs already in place.

Currently, there’s a 25% tariff on almost all imported cars as well as 25% tariffs on steel and aluminum, two major metals used in cars. The statement did not provide any details on the parameters of the deal.

On Saturday, a separate 25% tariff on most imported auto parts is set to take effect. Citing people familiar with the matter, the WSJ reported that those rates could be markedly lower.

Trump is scheduled to travel to Michigan on Tuesday, the heart of the American automobile industry, to mark the first 100 days of his second term in the White House.

Taken together, any auto tariff changes would be retroactive, allowing automakers to be refunded for prior tariffs paid that would no longer be in effect, according to the WSJ.

However, Trump has flip-flopped on tariff policies numerous times, meaning any new changes he makes could easily be reversed or altered.

This is a developing story and will be updated.