President Donald Trump is set to sign an executive order on April 29, 2025, easing his administration’s 25% tariffs on vehicles and auto parts, in a move designed to relieve pressure on American automakers and stimulate domestic production.
The order will streamline overlapping duties—such as those on steel and aluminum—and roll back part of the planned increase in import taxes on components used by U.S. factories.
Treasury Secretary Scott Bessent highlighted that the adjustment aims to bolster job creation by reducing the complexity of tariff enforcement, which analysts warned could add up to $4,700 to the sticker price of a new car and disrupt global supply chains.
Commerce Secretary Howard Lutnick emphasized that the revised measures reward manufacturers operating on American soil while giving foreign suppliers time to shift production domestically.
Automakers including General Motors, Ford and Stellantis welcomed the relief, citing that lower duties on imported components would ease cost pressures on suppliers and consumers. Industry groups had warned that the full 25% levy on parts, slated to come into effect May 3, risked halting assembly lines, raising vehicle prices and threatening plant viability.
Trump’s announcement coincides with his visit to Michigan, the heart of U.S. auto production, underscoring his administration’s commitment to “America First” trade policies that balance protectionist measures with operational flexibility. While economists caution that broader tariffs on other sectors may continue to dampen economic growth, the administration maintains that targeted relief for automakers will preserve manufacturing competitiveness and safeguard thousands of industry jobs.
