The Trump administration moved to reduce the impact of automotive tariffs on April 29, 2025. This action alleviates some duties imposed on foreign parts used in domestically manufactured cars.
Tariffs on cars made abroad will not pile on top of other levies. Commerce Secretary Howard Lutnick stated this deal rewards companies manufacturing domestically.
Car companies paying tariffs will not be charged other levies, such as those on steel and aluminum. Reimbursements will be given for such tariffs already paid.
President Trump traveled to Michigan on April 29, 2025, to commemorate his first 100 days in office. This period has been used to upend the global economic order.
The move to soften the effects of auto levies shows some flexibility on tariffs. These tariffs have sown turmoil in financial markets and created uncertainty for businesses.
Automakers expected Mr. Trump to issue relief from the auto tariffs ahead of his trip to Michigan. Michigan is home to the Detroit Three automakers and over 1,000 major auto suppliers.
General Motors CEO Mary Barra and Ford CEO Jim Farley praised the planned changes. Barra stated the president's leadership is helping level the playing field for companies like GM.
Farley said the changes will help mitigate the impact of tariffs on automakers, suppliers, and consumers. A coalition of U.S. auto industry groups urged Mr. Trump not to impose 25% tariffs on imported auto parts.
The industry groups warned tariffs would cut vehicle sales and raise prices. Mr. Trump had said earlier he planned to impose tariffs of 25% on auto parts no later than May 3.
The letter from the groups representing GM, Toyota Motor, Volkswagen, Hyundai and others, was sent to U.S. Trade Representative Jamieson Greer, Treasury Secretary Scott Bessent and Commerce's Lutnick.
The letter added that most auto suppliers are not capitalized for an abrupt tariff induced disruption. Many are already in distress and will face production stoppages, layoffs and bankruptcy.
It only takes the failure of one supplier to lead to a shutdown of an automaker's production line.