Overview

• President Donald Trump signed an executive order granting two years of phased tariff relief on imported auto parts for vehicles assembled in the U.S.
• The measure includes an 'import adjustment offset' of 3.75% of sticker price for U.S.-assembled cars through April 2026, dropping to 2.5% for the following year.
• Credits worth up to 15% of a vehicle's U.S.-assembled value are available to offset costs of foreign-made parts, providing automakers time to reconfigure supply chains.
• The relief applies to all U.S.-manufactured cars, including those sold under foreign brands, and aims to promote reshoring of auto production.
• Automakers like GM have postponed earnings calls and withdrawn forecasts as the industry evaluates the long-term impact of the policy shift.