Overview

• The US government has announced immediate reductions in tariffs on imported auto parts used in vehicles assembled in the United States.
• New policies will prevent auto tariffs from combining with existing duties on steel and aluminum for cars produced abroad.
• A phased refund system will provide manufacturers with up to 3.75% of a vehicle's value in the first year, decreasing to 2.5% in the second year, and ending in the third.
• US automakers had warned that the tariffs would disrupt global supply chains, increase consumer prices, and harm dealership operations.
• Germany, heavily reliant on auto exports, faces potential economic losses of €200 billion over four years due to US tariffs, with significant job risks in industrial regions.