Overview

• Effective April 29, the US government reduces tariffs on imported auto parts used in vehicles assembled domestically.
• The administration prohibits the layering of tariffs on foreign-produced cars to prevent compounding costs.
• President Trump and Trade Secretary Howard Lutnick frame the changes as incentives for companies investing in US production.
• The policy shift follows automaker trade groups warning that high tariffs would disrupt supply chains and increase consumer costs.
• This adjustment comes days before a planned 25% tariff on imported auto parts was set to take effect on May 3.