Trump will reduce some tariffs on the auto industry, according to White House officials

Thomson Reuters

· Posted: Apr 29, 2025 9:12 AM EDT | Last Updated: 6 minutes ago

U.S. President Donald Trump's medication volition determination to trim the interaction of his automotive tariffs connected Tuesday by alleviating immoderate duties imposed on overseas parts successful domestically manufactured cars and keeping tariffs connected cars made overseas from piling connected apical of different ones, officials said.

"President Trump is gathering an important concern with both the home automakers and our large American workers," Commerce Secretary Howard Lutnick said successful a connection provided by the White House.

"This woody is simply a large triumph for the president's trade policy by rewarding companies who manufacture domestically, while providing runway to manufacturers who person expressed their commitment to put successful America and grow their domestic manufacturing.

The Wall Street Journal, which archetypal reported the development, said the determination meant car companies paying tariffs would not beryllium charged different levies, specified arsenic those connected alloy and aluminum, and that reimbursements would beryllium fixed for such tariffs that were already paid.

A White House authoritative confirmed the study and indicated the determination would beryllium made authoritative connected Tuesday.

Trump is traveling to Michigan connected Tuesday to commemorate his first 100 days successful office, a play that the Republican president has utilized to upend the planetary economical order.

The determination to soften the effects of car levies is the latest by his medication to amusement immoderate flexibility connected tariffs, which have sown turmoil successful fiscal markets, created uncertainty for businesses and sparked fears of a crisp economical slowdown.

Automakers said earlier connected Monday they were expecting Trump to contented alleviation from the car tariffs up of his travel to Michigan, which is location to the Detroit Three automakers and more than 1,000 large car suppliers.

WATCH | What the original auto tariff program meant for Canada: 

General Motors CEO Mary Barra and Ford CEO Jim Farley praised the reported changes.

"We judge the president's leadership is helping level the playing tract for companies like GM and allowing america to put adjacent much successful the U.S. economy," Barra said.

Farley said the changes "will assistance mitigate the impact of tariffs connected automakers, suppliers and consumers."

Last week, a conjugation of U.S. car manufacture groups urged Trump not to enforce 25 per cent tariffs connected imported car parts, warning they would chopped conveyance income and rise prices.

Trump had said earlier helium planned to enforce tariffs of 25 per cent connected car parts nary aboriginal than May 3.

"Tariffs connected car parts volition scramble the planetary automotive supply concatenation and acceptable disconnected a domino effect that volition pb to higher car prices for consumers, little income astatine dealerships and will marque servicing and repairing vehicles some much expensive and little predictable," the manufacture groups said successful the letter.

The missive from the groups representing GM, Toyota, Volkswagen, Hyundai and others, was sent to U.S. Trade Representative Jamieson Greer, Treasury Secretary Scott Bessent and Lutnick.

"Most car suppliers are not capitalized for an abrupt tariff induced disruption. Many are already successful distress and will face accumulation stoppages, layoffs and bankruptcy," the letter added, noting "it lone takes the nonaccomplishment of 1 supplier to lead to a shutdown of an automaker's accumulation line."