Trump signs order easing some auto tariffs

Detroit – Chairman Donald Trump On Tuesday, an executive order signed an executive order, softening some automotive tariffs, which implements its administration earlier this month, as the car industry struggles with the regulator Uncertainty and additional cost Causes of levy.

Tariffs of 25% on imported vehicles in the US will continue, but the purpose of new measures is to reduce the overall tariff level on vehicle imports, which resulted in separate levy – such as additional 25% tariff on steel and aluminum – “stacking” on top of each other.

Under order, additional 25% tariff on auto parts Who were ready to start by 3 May It will still be effective, but vehicles passing through the final assembly in the US will be able to qualify for partial reimbursement on those levy for two years.

The reimbursement related to those parts includes a possible offset of an amount of 3.75% of the value of the US-made car assembled before May 1, 2026. After that, the reimbursement cap decreases by 2.5% of the car value by 30 April 2027.

The administration said that it calculated those rates by implementing 25% duty for 15% of the price of US-Its vehicle in the first year, and 10% 25% of that value in the second year.

It is not clear how a vehicle manufacturer will get such a reimbursement, but the proposal is the retrieval when the tariff is effective on April 3.

“We just wanted to help them during this small infection,” Trump said on Tuesday. “If they cannot achieve parts, we did not want to punish them.”

Trump is scheduled to visit Michigan on Tuesday to celebrate its first 100 days in the Oval office.

Auto tariff follows vehicle manufacturer and auto policy groups Advocate Trump administration for some relief, especially from the “stacking” effect of many duties.

Last week, six of the top policy groups representing the American motor vehicle industry, including, Alliance for motor vehicle innovation It represents most of the major vehicle manufacturers, unnecessarily joined the Trump administration against the implementation of upcoming tariffs on auto parts.

Group said, “President Trump has indicated an openness to reconsider 25 percent of the administration on imported automotive parts – recently similar to tariff relief approved for consumer electronics and semiconductors. This would be a positive development and reception relief,” the groups said in a letter to Trump officials.

Group – representing franchiseed dealers, suppliers and almost all major vehicle manufacturers – said that upcoming levy can endanger American motor vehicle production and note that many auto suppliers are already “in crisis” and will not be able to bear additional cost growth, which lead to comprehensive industry problems.

Reporting its first quarter results on Tuesday ahead of the company, General Motors CFO Paul Jacobson told reporters that “the future effects of the tariff may be important.”

In response to regulator uncertainty and increase in expected costs, GM shut down its 2025 guidance, which did not take care of tariffs; Suspended stock buybackAnd till Thursday, his quarterly investor calls were delayed for two days.

The automakers expressed appreciation for the expected changes, but continued to face significant cost growth.

“Ford welcomes and appreciates these decisions by President Trump, which will help reduce the impact of tariffs on vehicle manufacturers, suppliers and consumers,” Paid CEO Jim Farley said in an email statement on Tuesday.

John Elkan, president of Stellentis, echoed those comments: “Stelanis appreciate the tariff relief measures fixed by President Trump. While we assess the impact of tariff policies on our North American operations, we are tied to our constant cooperation with American administration to strengthen and encourage exports.

GM CEO Mary Barra Thanking Trump too, saying that “Helping the playground for companies like GM and allowing us to invest even more in the American economy.

– Michel Luhan of CNBC contributed to this report.