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The Financial Times is reporting that President Trump is planning to exempt US automakers from tariffs on auto parts from China. Asking for a Trend Host Julie Hyman and Roundhill Investments CEO Dave Mazza discuss the report.
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We got some breaking news. Now, we're following around tariffs. There is a report that President Donald Trump plans to exempt car makers from some US tariffs. That's according to the Financial Times. It would, of course, represent a turnaround that would exempt car parts from the tariffs Trump is imposing, specifically from China. They would leave in place a 25% tariff that Trump imposed on all imports of foreign-made cars and a separate 25% levy on parts would also remain, and it's due into a take into effect from May 3rd. Are you confused yet? I am. Um, Dave Mazza of Round Hill Investments is still with us here. Um, so, okay, so just to reiterate here, basically this would exempt parts from China specifically, but not necessarily from other places. The 10% tariff would remain in effect and also the 25% tariff on all imports of foreign-made cars and the 25% tariff on parts that's supposed to take into effect May 3rd. But there's an exemption from the steel and aluminum tariffs. In other words, it's not the worst case scenario for car parts, but it is still for other parts of the supply chain. I think, if I'm understanding this...
Yeah. I think I'm gonna need a cliff notes on this one, but any exemption, sort of any pullback is gonna be viewed positively. I think one of the reasons why we're seeing a pop right in in names like GM and Ford, uh, is because of this. Now, the extent of that exemption as you, uh, sort of were outlining may not be particularly broad, um, but it's something, and I think investors in this market are looking for something to hang their hat on, and we got it today for at least, for now, on some of the auto parts.
Yeah. And we're going to start to hear from the automakers reporting their earnings too. We probably are going to get some details on this. I go back to what we heard our DC reporter Jennifer Schonberger talking about at the top of the show when she asked, or when Scott Beson was asked, who is the president listening to? He brought up the CEOs that have been visiting Washington, and I think that's really telling here as we start to get headlines like this.
Yeah. I think, you know, you know, we know the president likes to come out sort of with a big voice and sort of this big bang, and now we're kind of starting to hear from CEOs about the reality of the situations that they face, um, with the uncertainty and with the tariffs particularly on goods that are coming into the country and sort of this what is effectively become an embargo. And I think it's a positive that now we're starting to see rollbacks in certain places. Time will tell the extent of them or what happens with that. Um, but again, generally, sort of any positive news is gonna be viewed positively.
Or, I would say any less bad news.
Well said.
Because it's not like it's fantastic. It's less the worst case scenario. Exactly.
