In a move aimed at softening the blow of his own trade policies, President Donald Trump signed two executive orders on Tuesday that will ease some of the pressure U.S. automakers have faced under steep import tariffs. The announcement came just hours before a scheduled campaign rally in Michigan, a key hub for the U.S. auto industry.
While the 25% tariff on imported vehicles remains in place, car manufacturers will now be exempt from additional levies on materials like steel and aluminum—components critical to auto production. According to the administration, the tariffs were never intended to "stack" on top of each other and overly burden domestic producers.
“It’s a little bit of help,” Trump said. “It’s a little transition. If they can’t get parts, we didn’t want to penalize them.”
The change provides temporary relief to carmakers who assemble vehicles in the U.S., offering a two-year window of reduced tariff pressure as they adapt to the administration’s broader push for domestic manufacturing.
The original tariffs, part of Trump’s effort to revitalize U.S. industry, had drawn sharp criticism from automakers who warned that rising material and production costs could force price hikes for consumers and squeeze profits. Industry executives had lobbied the administration for targeted exemptions and more time to reconfigure supply chains.
Commerce Secretary Howard Lutnick defended the strategy, stating, “These tariffs are part of a long-term goal to bring domestic auto manufacturing back.”
Though automakers welcomed the latest adjustment, experts cautioned that the relief may be short-lived. Consumers are still likely to face higher prices, and companies may struggle to quickly scale up U.S. production to meet demand. “It gives them a little bit of time to plan out what their strategy could be,” said automotive industry consultant Lenny LaRocca.
Still, major carmakers expressed support for the administration’s willingness to adjust course. “We believe the President’s leadership is helping level the playing field for companies like GM and allowing us to invest even more in the U.S. economy,” said General Motors CEO Mary Barra in a statement.
Stellantis, which owns brands like Dodge, Jeep, Ram, and Chrysler, echoed the sentiment. Chairman John Elkann said the company “appreciates the tariff relief measures” and is committed to working with the administration to strengthen the American auto sector.
Treasury Secretary Scott Bessent framed the move as part of a broader vision for U.S. manufacturing. “President Trump is interested in the jobs of the future, not jobs of the past,” Bessent said. “We do want to have precision manufacturing and bring that back.”
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