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5h ago

Trump Weighs Major Auto Tariff Relief Favoring U.S. Assembly

The White House says any policy change remains speculative until the president signs an order.

U.S. President Donald Trump announces a deal with Pfizer to sell drugs at lower prices, in the Oval office of the White House in Washington, D.C., U.S., September 30, 2025. REUTERS/Ken Cedeno/File Photo

Overview

  • Reuters reports, citing Senator Bernie Moreno and auto officials, that the president is considering expanded relief that could largely shield U.S.-assembled vehicles from the 25% auto tariffs.
  • Options under review include keeping the import adjustment offset at 3.75% for up to five years and extending the relief to U.S. engine production.
  • Moreno said automakers with final assembly in the United States would be rewarded and could be immune to the tariffs, though no decision has been finalized.
  • Shares of General Motors, Ford and Stellantis rose about 2% to 4% after the report, while Tesla declined and Toyota and Honda gained.
  • The current framework provides a 3.75% offset through April 2026 followed by 2.5% in the second year for eligible U.S.-assembled vehicles, according to the Commerce Department.