MW Trump to ease impact of tariffs on U.S. automakers, Lutnick says

By Mike Murphy

President Donald Trump will soon announce moves to reduce the impact of his tariffs on the U.S. auto industry, an official confirmed late Monday.

The Wall Street Journal first reported the softening of duties on foreign-built cars and imported auto parts. According to the Journal, U.S. companies paying 25% tariffs on imported automobiles will not have to pay additional tariffs, such as those on steel and aluminum. The move will be retroactive and automakers reportedly will be reimbursed for extra duties they already paid.

Pending 25% tariffs on imported auto parts, set to take effect May 2, will also be modified, the Journal reported, allowing automakers to be reimbursed up to 3.75% of the value of a U.S-made vehicle for one year, before that figure drops to 2.5% next year and is phased out the following year.

The White House later confirmed the report in a statement.

"President Trump is building an important partnership with both the domestic automakers and our great American workers," Commerce Secretary Howard Lutnick said. "This deal is a major victory for the president's trade policy by rewarding companies who manufacture domestically, while providing runway to manufacturers who have expressed their commitment to invest in America and expand their domestic manufacturing."

The auto industry had warned that the steep tariffs imposed by the Trump administration would be disastrous, squeezing automakers' margins and raising prices for consumers.

"Ford welcomes and appreciates these decisions by President Trump, which will help mitigate the impact of tariffs on automakers, suppliers and consumers," Ford $(F)$ Chief Executive Jim Farley said in a statement, according to the Journal.

Trump is scheduled to speak at a rally in Michigan on Tuesday evening, marking his first 100 days in office. The Journal said Trump is likely to announce the tariff changes ahead of that speech.

-Mike Murphy

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April 28, 2025 20:46 ET (00:46 GMT)

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