Michelle ThompsonPresident Donald Trump is expected to introduce measures to lessen the effect of tariffs on American car manufacturers, according to a senior White House official.
Commerce Secretary Howard Lutnick described the decision as a key success for the administration’s trade agenda, noting it rewards firms producing within the U.S., in a statement shared with Reuters.
The upcoming changes will include reducing certain import taxes on foreign-made parts used in U.S.-built vehicles. Though tariffs will remain on cars produced overseas, additional charges—such as those on steel and aluminium—will not apply, the Wall Street Journal reported.
Trump is scheduled to host a rally in Michigan on Tuesday to mark his first 100 days in office. Michigan is home to major auto companies Ford, General Motors (GM), and Stellantis, along with a large supplier base.
Tariffs have been a focal point of Trump’s economic strategy, which he once called “the most beautiful word in the dictionary.” However, these measures have led to global market instability, uncertainty for businesses, and increased recession fears.
This latest move to soften the blow to the auto industry signals a more flexible approach from the administration.
GM CEO Mary Barra welcomed the decision, thanking Trump for backing the auto sector and its workers in a statement to the BBC. She noted positive discussions with the administration and expressed optimism about ongoing collaboration.
Ford and Stellantis have not yet responded to media inquiries.
A coalition of U.S. auto groups, including GM, Toyota, and Volkswagen, had recently urged the president to abandon plans for a 25% tariff on imported car parts. They warned such measures would raise vehicle prices, reduce dealership sales, and make repairs costlier.
Trump had earlier announced the tariffs would be enforced starting May 3.
