Commerce Secretary Lutnick says deal has been reached on car tariffs

Commerce Secretary Howard Lutnick said a deal has been reached on car tariffs with automakers.

Lutnick appeared to confirm reporting by The Wall Street Journal earlier on Monday that said President Trump will announce a new tariff structure that would avoid stacking tariffs for cars on top of other tariffs that are currently in place. 

There is a current 25% tariff on almost all imported cars and 25% tariffs on steel and aluminum, which are heavily used in cars.

“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 told CNN.

General Motors’ CEO Mary Barra responded to the news Monday.

“We’re grateful to President Trump for his support of the US automotive industry and the millions of Americans who depend on us,” Barra said in a statement.

“We believe the President’s leadership is helping level the playing field for companies like GM and allowing us to invest even more in the US economy. We appreciate the productive conversations with the President and his Administration and look forward to continuing to work together,” she added.

Carmakers listed in Asia saw shares jump on Tuesday over the news. Toyota was last trading 3.6% higher, compared to 2.3% for Nissan, 2% for Kia, 1.2% for Hyundai, and 1% for Honda.