During a meeting with El Salvador’s President Nayib Bukele on Monday afternoon, President Donald Trump indicated he is considering targeted tariff exemptions for automobile manufacturers, signaling a willingness to adjust trade policies during ongoing negotiations.
This potential reprieve for carmakers follows recent actions by the administration to shield electronic devices like smartphones and laptops from reciprocal tariffs imposed on Friday. While the president maintains these adjustments demonstrate flexibility, Democratic lawmakers have voiced concerns that such exemptions are creating instability and potentially opening avenues for corruption.
“I’m exploring options to assist auto companies as they shift production to Canada, Mexico, and other locations,” Trump stated. “They need a bit of time to complete this transition.”
Trump emphasized his approachability in trade discussions, drawing an analogy to navigating obstacles: “Look, I’m a flexible person. You can’t just build a wall; sometimes you have to go around it, under it or above it. There will be maybe things coming…I don’t want to hurt anybody, but the end result is we’re going to get to the position of greatness for our country.”
The Friday announcement exempting electronics from a 145% tariff on Chinese goods did not eliminate all levies; these devices remain subject to tariffs related to semiconductors and fentanyl.
Previously, Trump had signaled openness to providing relief for U.S. companies disproportionately impacted by the tariffs, following a pause on reciprocal increases for countries demonstrating commitment to new trade agreements.
Automobile manufacturers previously received a one-month reprieve from a 25% tariff on goods imported from Canada and Mexico earlier this year, after discussions with industry leaders.
Democrats have sharply criticized these actions. Former Clinton and Obama economic advisor Lawrence Summers argued that targeted exemptions foster “rent seeking” and cronyism:
“When you start giving an exemption here and an exemption there on tariffs, it’s introducing all kinds of corruption into the system.”
Senator Elizabeth Warren described the situation as “chaos and corruption,” advocating for Congressional action to limit the president’s authority to declare national emergencies, which currently underpin these tariff policies.
Defending his decisions on Truth Social, Trump asserted that no one is being excused from unfair trade practices:
- “NOBODY is getting ‘off the hook’ for the unfair trade balances…especially not China.”
- “There was no tariff ‘exception’ announced on Friday…They are just moving to a different Tariff ‘bucket.’”
The post also stated that electronics remain subject to a 20% fentanyl-related tariff and indicated ongoing scrutiny of the semiconductor supply chain within upcoming National Security Tariff Investigations.
Fox News Digital sought comment from the White House regarding potential tariff relief for automakers but did not receive a response by publication time.
