Explaining what Trump's slight auto tariff reprieve really means
CBS News
[{'start': '1.199', 'end': '5.359', 'text': 'The Trump administration gave auto'}, {'start': '3.040', 'end': '7.279', 'text': 'manufacturers a slight reprieve on'}, {'start': '5.359', 'end': '9.599', 'text': 'Tuesday by reducing the impact of'}, {'start': '7.279', 'end': '11.200', 'text': 'tariffs on their products. CBS News'}, {'start': '9.599', 'end': '12.880', 'text': "Money Watch correspondent Kelly O'Grady"}, {'start': '11.200', 'end': '14.480', 'text': 'has more on this. Kelly, this was also'}, {'start': '12.880', 'end': '16.320', 'text': 'the day that the administration was'}, {'start': '14.480', 'end': '18.560', 'text': 'celebrating 100 days. So, might have'}, {'start': '16.320', 'end': '20.400', 'text': 'gotten lost for some people on exactly'}, {'start': '18.560', 'end': '22.720', 'text': 'where the reprieve was coming from, but'}, {'start': '20.400', 'end': '25.039', 'text': "what is still in? So, what's changed?"}, {'start': '22.720', 'end': '27.199', 'text': "Okay, so let's kind of remind ourselves"}, {'start': '25.039', 'end': '29.760', 'text': 'where things stood before this week. So,'}, {'start': '27.199', 'end': '32.160', 'text': 'auto manufacturers uh producing vehicles'}, {'start': '29.760', 'end': '36.239', 'text': 'in the US, they were facing a stacking'}, {'start': '32.160', 'end': '38.719', 'text': 'impact of tariffs. That included a 25%'}, {'start': '36.239', 'end': '40.800', 'text': "tariff on all vehicles. Sometimes it's"}, {'start': '38.719', 'end': '43.600', 'text': "live TV, it doesn't work. Along with an"}, {'start': '40.800', 'end': '46.000', 'text': 'extra 25% on imported steel and'}, {'start': '43.600', 'end': '48.480', 'text': 'aluminum, all of those tariffs, they can'}, {'start': '46.000', 'end': '51.360', 'text': 'add up on top of each other. Now, next'}, {'start': '48.480', 'end': '53.360', 'text': 'thing is that uh there are roughly'}, {'start': '51.360', 'end': '56.480', 'text': '30,000 parts in a vehicle, which'}, {'start': '53.360', 'end': '58.480', 'text': 'includes everything from a headlight to'}, {'start': '56.480', 'end': '61.199', 'text': 'a bolt used in an engine. And to break'}, {'start': '58.480', 'end': '63.680', 'text': 'down how impacts can add up inside of a'}, {'start': '61.199', 'end': '66.960', 'text': 'vehicle, I mean, many of these engines,'}, {'start': '63.680', 'end': '69.760', 'text': "they're cased in aluminum, right? And so"}, {'start': '66.960', 'end': '71.840', 'text': "that faces the 25% tariff it's imported."}, {'start': '69.760', 'end': '74.000', 'text': 'And think about in general how important'}, {'start': '71.840', 'end': '75.600', 'text': 'steel and aluminum is to making one of'}, {'start': '74.000', 'end': '78.159', 'text': 'these babies, right? On top of that,'}, {'start': '75.600', 'end': '81.600', 'text': 'there are many parts inside that engine'}, {'start': '78.159', 'end': '83.920', 'text': 'that can then face an additional 25%'}, {'start': '81.600', 'end': '86.799', 'text': "tariff if they're imported. Now, every"}, {'start': '83.920', 'end': '88.960', 'text': 'single American manufactured vehicle, to'}, {'start': '86.799', 'end': '92.000', 'text': 'make things more complicated, um that'}, {'start': '88.960', 'end': '94.240', 'text': 'are coming internationally, uh one study'}, {'start': '92.000', 'end': '97.840', 'text': 'by the firm e-arketer found that one'}, {'start': '94.240', 'end': '101.200', 'text': 'vehicle component crosses between the US'}, {'start': '97.840', 'end': '103.600', 'text': 'border with Canada and Mexico eight'}, {'start': '101.200', 'end': '105.680', 'text': 'times. Okay, eight times on average'}, {'start': '103.600', 'end': '108.000', 'text': 'before the vehicle is fully assembled.'}, {'start': '105.680', 'end': '111.560', 'text': 'Now, with this new executive order,'}, {'start': '108.000', 'end': '115.520', 'text': 'vehicle manufacturers will only pay the'}, {'start': '111.560', 'end': '119.200', 'text': '25% tariff on those imported autos and'}, {'start': '115.520', 'end': '120.960', 'text': 'auto parts. That means no imported tax'}, {'start': '119.200', 'end': '122.320', 'text': 'on steel and aluminum. Now, the'}, {'start': '120.960', 'end': '124.240', 'text': "government's also offering to give"}, {'start': '122.320', 'end': '125.920', 'text': 'manufacturers a small temporary offset.'}, {'start': '124.240', 'end': '127.439', 'text': 'Think of it kind of like a rebate. This'}, {'start': '125.920', 'end': '129.119', 'text': 'is going to be based on fees already'}, {'start': '127.439', 'end': '131.440', 'text': 'paid since April 3rd. and then car'}, {'start': '129.119', 'end': '133.200', 'text': 'companies can also apply for this over'}, {'start': '131.440', 'end': '135.680', 'text': 'the next two years. Now, what does this'}, {'start': '133.200', 'end': '137.599', 'text': 'mean for you at home? Well, economists'}, {'start': '135.680', 'end': '139.520', 'text': 'at Anderson Economic Group analyzed the'}, {'start': '137.599', 'end': '141.840', 'text': 'impact of these changes. They still'}, {'start': '139.520', 'end': '143.760', 'text': 'found auto manufacturers will face'}, {'start': '141.840', 'end': '145.840', 'text': 'thousands of dollars in additional'}, {'start': '143.760', 'end': '148.879', 'text': 'costs. For example, the Ford Explorer,'}, {'start': '145.840', 'end': '150.599', 'text': 'which has its final assembly in Illinois'}, {'start': '148.879', 'end': '154.599', 'text': 'and costs'}, {'start': '150.599', 'end': '158.440', 'text': '$50,000, will see tariffs drop by about'}, {'start': '154.599', 'end': '160.560', 'text': '$1,900, but they still face a levy of'}, {'start': '158.440', 'end': '162.000', 'text': '$2,400. Now, the study also noted that'}, {'start': '160.560', 'end': '164.080', 'text': 'the savings is going to be slightly'}, {'start': '162.000', 'end': '166.160', 'text': 'larger on high-end cars like Cadillac'}, {'start': '164.080', 'end': '167.519', 'text': 'Escalades. Regardless of these savings,'}, {'start': '166.160', 'end': '169.760', 'text': 'though, there still will likely be a'}, {'start': '167.519', 'end': '171.920', 'text': 'price impact to consumers. Experts at'}, {'start': '169.760', 'end': '174.800', 'text': 'Cox Automotive, uh, Lindsay, expect'}, {'start': '171.920', 'end': '176.480', 'text': 'customers to see at least a 5% increase'}, {'start': '174.800', 'end': '177.680', 'text': 'even with these tariff adjustments. This'}, {'start': '176.480', 'end': '179.440', 'text': "is why we're seeing people go out and"}, {'start': '177.680', 'end': '181.440', 'text': "buying cars right now, right? It's the"}, {'start': '179.440', 'end': '184.159', 'text': "nails. It's the long nails. I know it's"}, {'start': '181.440', 'end': '187.760', 'text': 'the nails. What can you do with fashion?'}, {'start': '184.159', 'end': '187.760', 'text': 'Thank you so much, fashion.'}]