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U.S  Financial Lifeline to Automakers Amid New Truck Tariffs

American automakers are set to receive prolonged financial relief from the federal government, even as new tariffs are imposed on imported heavy trucks in a bid to reshore manufacturing.

Under new orders, a key tax credit that helps major companies like General Motors, Ford, and Tesla offset the cost of tariffs on imported parts has been extended for five years, now running through 2030. This credit, worth 3.75% of a vehicle's retail price, was also expanded to apply to domestic engine production.

This relief for automakers comes alongside a new 25% tariff on imported medium- and heavy-duty trucks and their parts, set to begin November 1. The administration argues the tariff is necessary for national security and will protect U.S. manufacturers from foreign competition.

The move has been welcomed by some industry leaders. Ford's CEO stated it would "help level the playing field" for domestic parts manufacturing. However, it has drawn criticism from business groups who argue the tariffs strain relationships with key allies like Mexico, Canada, and Japan.

The policy reflects the administration's continued use of trade measures to shape the industrial landscape, following earlier tariffs that have cost automakers billions of dollars.

Compiled By: Target Blog News Media

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