Overview

• The Trump administration will reduce the impact of auto tariffs by exempting foreign parts used in domestically manufactured vehicles.
• New measures will prevent multiple tariffs from stacking on imported cars, addressing industry concerns over compounded costs.
• Commerce Secretary Howard Lutnick praised the relief plan as a victory for domestic manufacturing and a boost for investment in U.S. production.
• A coalition of U.S. auto industry groups had warned that the 25% tariffs on imported parts could disrupt supply chains, raise consumer prices, and lead to layoffs or bankruptcies.
• Automakers had anticipated the relief announcement ahead of President Trump's upcoming visit to Michigan, a key hub for the U.S. auto industry.