By coinnews 
00:00 Speaker A
What what are these new rules that we’re just learning about here?
00:08 Speaker B
You know, we heard about some of these early this morning, when some of this news is coming out. The journal report about how we’re going to get possibly two stages of relief here for automakers. They were desperately seeking some relief here from, you know, 25% uh import tariffs, right? So, basically, uh the first part is the the White House doesn’t want to de- doesn’t want they want to destack some of these tariffs, right? They don’t want to have automakers pay 25% import tariffs as well as um your your steel and aluminum tariffs or China fentanyl tariffs. What they’re going to do is they’re going to say, “You’re going to pay one of one of these, the highest one. That’ll be your only tariff there. You’re not going to stack them on top of each other.” Uh which something that will be helpful for automakers that are importing. Uh but also, more importantly, there’s going to be an auto parts exemption here. So, they’re kind of they’re going to stage this in uh in two two ways. So, basically, in the first year, uh you get up to an amount of 3.75% of the value of the car, uh based on the the imported parts you’re bringing in. You’re going to get that as as an offset. Uh the formula kind of works out in such a way that they figured out that 15% of the parts coming in for cars made in the U.S., they just can’t be replaced or onshored here. So, they’re going to give you that money back. It’s a complicated equation. Basically, it’s 15% * 25% tariff gets you to 3.75%. That’s going to be backed out of the price of the car. It’s going to give me an offset for tariffs. I know it’s really complicated, but that’s just sort of uh where we are right now. And that’s going to give uh American companies some time to onshore some of the stuff in two years, that’ll that’ll go away. And that’s sort of where we are with the tariffs. A little bit of relief here, but still very complicated and still nowhere near where we were before the whole tariff situation started.
03:13 Speaker A
So, Pras, you know, bottom line, if I was a CEO, uh I was running one of these auto companies, how do you think those CEOs are feeling today? I mean, is it is it a a big sigh of relief? Is it more, “Well, you know, I’ll I’ll I’ll take any relief I can get.”? What do you think they’re thinking of?
04:01 Pras
Uh that’s a good point. I think it’s a mixture of, “I’ll take whatever relief I can get,” and also and also some genuine relief. I mean, Ford, uh CEO Jim Farley said this this is good news. Uh so did Stellantis’s uh Chairman uh Johan Elkann. Uh and Mary Barra as well is talking about how this is good for the auto industry, and they want to work with the Trump administration to to keep pushing forward here to make sure that, you know, they’re they’re making cars in the U.S., but also in a in a manner that isn’t going to uh punish the automakers. So, I think that’s it’s it’s a positive step right now that we’re going to see here, uh especially with the auto parts exemptions. So, yes, it is positive, but still I I I don’t think they got all they wanted, but it’s enough that they can actually uh at least offset some of those those parts that are coming that they can’t replicate here in the U.S.
05:35 Speaker A
All right, Pras. Thank you. Appreciate it.