The order prevents imported cars, subject to a 25% tariff, from paying other levies like those on aluminum and steel
President Donald Trump signed an executive order yesterday offering a slight reprieve to some car companies from auto tariffs after they pressured that the levies would harm the industry.
The order prevents imported cars, subject to a 25% tariff, from paying other levies like those on aluminum and steel. Trump stated that “stacking” tariffs would exceed policy goals. It also allows automakers to get reimbursement for some tariffs paid since March.
The administration also softened a planned 25% tariff on auto parts by offering offsets of up to 3.75% for US-made vehicles—dropping to 2.5% next year and ending the year after.
While the auto tariffs were meant to boost domestic production, several manufacturers warned that it could push up car prices for Americans. Trump announced the changes ahead of a speech in Michigan to mark his 100 days in office.
Despite the tariff relief, the auto industry still faces uncertainty and high costs, leading GM to withdraw its annual earnings forecast and delay its investor call.