Trump Eases Auto Tariffs in Boost for Domestic Manufacturers

President Trump's administration announces a plan to mitigate the impact of automotive tariffs on foreign parts in U.S.-made vehicles while maintaining tariffs on entirely foreign-produced cars. This move aims to reward domestic manufacturing, offering relief amid concerns from U.S. automakers about the economic impact of high tariffs.

In a bid to bolster American car manufacturers, President Donald Trump's administration is set to alleviate the burden of automotive tariffs on domestically manufactured vehicles, according to officials. The plan, expected to be detailed on Tuesday, will provide certain exemptions for foreign parts used in U.S.-made cars, while sustaining tariffs on fully imported vehicles.

This strategic move aligns with Trump's trade policy goals, rewarding companies that invest in American production. Commerce Secretary Howard Lutnick emphasized the importance of building partnerships between domestic automakers and the American workforce as the administration seeks to mitigate economic concerns amid fluctuating global markets.

The decision comes ahead of Trump's visit to Michigan, a hub for major automakers, and amid rising voices from U.S. auto industry groups cautioning against the implications of steep tariffs. The groups, representing industry giants like General Motors and Toyota, seek to avoid a disruption in the supply chain that could lead to inflated car prices and production halts.

(With inputs from agencies.)