Trump says he's looking at certain tariff exemptions for automakers: 'They need a little bit of time'
President Donald Trump told reporters Monday afternoon that he was "looking" into potential part-specific tariff exemptions for carmakers, underscoring Trump's stance that it is important to be "flexible" amid the current trade negotiations.
Trump's signal about a potential reprieve for auto manufacturers comes after the administration moved to exempt electronic devices — such as smartphones, iPhones and laptops — from the president's reciprocal tariffs on Friday. Trump's decision to provide certain exemptions falls in line with his stance that it is crucial to be "flexible" amid the ongoing trade negotiations, but Democrats have criticized the recent exemptions for adding more uncertainty to the situation.
"I'm looking at something to help some of the car companies, where they are switching to parts that were made in Canada, Mexico and other places," the president told reporters from the Oval Office Monday afternoon, during a meeting with El Salvador's President Nayib Bukele. "They're going to make them here, but they need a little bit of time — so I'm talking about things like that."
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While talking to reporters, Trump also reiterated comments he made last week about the need to be flexible amid the ongoing tariff negotiations with various countries.
"Look, I'm a very flexible person. I don't change my mind, but I'm flexible, and you have to be. You just can't have a wall, and you'll only — sometimes you have to go around it, under it or above it," Trump told reporters. "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."
A notice published by U.S. Customs and Border Patrol on Friday indicated that smartphones, computers and other electronics would be spared from Trump's 145% import tariffs on Chinese goods. However, the electronics will still be subject to semiconductor tariffs and tariffs related to fentanyl, per the administration and the president.
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Trump signaled last week after he paused reciprocal tariff increases on 75 countries that showed a good-faith effort to negotiate new trade deals that he was open to providing exemptions for certain U.S. companies inordinately impacted by the tariffs.
The president's signal that more relief could be on the way for carmakers comes after he already provided the industry with a one-month reprieve from the 25% tariffs imposed on all goods imported from Canada and Mexico, implemented March 4, after speaking with executives with three of the country's largest auto dealers.
While Trump has characterized his willingness to provide tariff relief as a sign he is willing to be flexible, Democrats have described the moves to provide relief for certain industries as chaotic and corrupt.
"I told Fareed Zakaria this morning: When you start giving an exemption here and an exemption there on tariffs, it's introducing all kinds of corruption into the system," Lawrence Summers, former Clinton and Obama administration economic advisor, said Sunday. "It's introducing what economists call rent seeking, where it's hugely advantageous for people to be friends of the first family and hugely advantageous for people to hire lobbyists. So, the big boom that's being created with tariffs is in a crony capitalism."
"Look, there is no tariff policy. It's just all chaos and corruption," Sen. Elizabeth Warren, D-Mass., added in an interview with ABC News over the weekend. "These guys are into chaos and into corruption, and this is the reason that it is time for Congress to step up and to say, under the authority that the president is currently using by declaring these national emergencies — no — the law says specifically Congress can just say, 'There's no national emergency across the board here,' and revoke that authority from the president. That will mean we can go back to having actually a real tariff policy. Congress will have its position in place, and then we can negotiate where we need to negotiate, but we got to stop this craziness."
Meanwhile, in a weekend Truth Social post following criticism from the likes of people like Warren and Summers, the president sought to defend the move to provide some relief to the electronics industry.
"NOBODY is getting ‘off the hook’ for the unfair trade balances, and Non Monetary Tariff Barriers, that other countries have used against us, especially not China which, by far, treats us the worst!" said Trump.
"There was no tariff ‘exception’ announced on Friday," Trump declared in the post, noting that electronics will still be subject to a 20% tariff related to fentanyl. "They are just moving to a different Tariff ‘bucket.’ The Fake News knows this, but refuses to report it. We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations."
Fox News Digital reached out to the White House for comment, and to inquire about further details regarding the potential temporary tariff relief for automakers, but did not receive a response in time for publication.