The White House is poised to lower tariffs on the US automotive industry. This move will bring significant benefits to those automakers who have been actively lobbying to prevent the impact of record import tariffs.

According to sources familiar with the matter, the US Department of Commerce will announce the extension of a five-year arrangement that allows automakers to reduce the tariffs they pay on imported auto parts. Previously, this clause was set to expire in two years.

The announcement could come as soon as Friday, the people said, noting that similar tariff announcements have slipped. The policy is expected to be detailed in government documents that also formally implement tariffs on imported trucks.

The concession follows months of lobbying by carmakers, including Ford and General Motors, to secure relief from President Donald Trump’s tariffs. US automakers face higher costs from the levies he has imposed on imported vehicles, parts and materials, such as steel and aluminum.

GM shares gained as much as 3.8% on the news. Ford and Jeep-maker Stellantis NV also rose.

Ford Chief Executive Officer Jim Farley has said that the US-Japan trade deal provides rivals such as Toyota Motor Corp. a cost advantage worth thousands of dollars per vehicle over competing models made in the US, when factoring in the Asian nation’s lower labor and currency costs. That framework lowered tariffs on Japanese auto imports to 15% from 27.5%.

Previously, car manufacturers could deduct a portion of the 25% tariff imposed on imported components. According to this regulation, those car manufacturers that produce and sell complete vehicles in the United States can apply for a deduction amount that can reach up to 3.75% of the value of the vehicles manufactured in the US. This deduction amount will gradually decrease to approximately 2.5% after one year, and then be cancelled in the following year.

Earlier this year, Trump imposed a 25% tariff on entire vehicle products. In the tariff policies he has formulated for Canada and Mexico respectively, there are already exemption clauses for vehicles that have sufficient domestic components and meet the requirements of the current North American trade agreement.