Trump to ease auto tariffs after industry appeals, offers relief on foreign parts and metals

US President Donald Trump is expected to roll back portions of his planned tariffs on automobiles following strong lobbying from the industry, granting relief to carmakers who manufacture in the United States but rely on foreign parts.

As per reports, this shift aims to lessen the burden of overlapping levies, with partial reimbursements being considered for manufacturers producing cars domestically.

The revised policy, expected to be formally announced via presidential proclamation as early as Tuesday, comes just ahead of the scheduled May 3 implementation of a 25% tariff on imported auto parts, as per reports.

Automakers producing vehicles within the US will reportedly be eligible for partial tariff refunds proportional to their level of domestic production. However, these reimbursements are designed to taper off over time, nudging automakers to localise their supply chains more extensively.

In addition to the auto parts levies, the White House also plans to prevent double-tariffing on imported automobiles by offering exemptions from separate tariffs on aluminium and steel—materials that have also faced duties under Trump's trade policy.

The move has been framed by the administration as a ‘major victory’ for domestic industry. “This deal is a major victory for the president’s trade policy by rewarding companies who manufacture domestically while providing runway to manufacturers who have expressed their commitment to invest in America and expand their domestic manufacturing,” Commerce Secretary Howard Lutnick said in a statement.

The announcement is expected to coincide with Trump’s visit to Michigan—a major automotive hub—to mark the first 100 days of his second term. His address in Macomb County, home to a large blue-collar workforce, will reportedly highlight the policy pivot as a direct response to industry concerns and part of his broader strategy to revitalise US manufacturing.

Industry stakeholders, including automakers, dealerships and suppliers, had earlier warned the administration that steep tariffs on foreign parts could disrupt a deeply integrated North American supply chain. In response, Ford CEO Jim Farley praised the administration’s reconsideration, stating that the relief would help mitigate cost pressures on the industry. General Motors CEO Mary Barra echoed this sentiment, adding that the policy shift would allow the company to further invest in the US economy.

Trade associations had also submitted formal appeals, arguing that the proposed tariffs risked increasing production costs and stalling the ongoing recovery of the American car manufacturing sector.

Earlier this month, Trump had hinted at some flexibility in his stance, telling reporters that carmakers using foreign parts from countries like Canada and Mexico ‘need a little bit of time, because they’re going to make them here.’ The latest changes appear to reflect that sentiment, aiming to balance his protectionist trade agenda with practical concessions to keep US-based auto production competitive.