Trump's Executive Order: A Turn in Auto Tariff Policy

President Donald Trump is set to sign an executive order to ease automotive tariffs. This move aims to reduce duties on foreign parts in U.S.-made cars, avoiding double tariffs. The decision comes amidst concerns from automakers who anticipate relief from such tariffs, boosting domestic manufacturing and investment.

President Donald Trump will sign an executive order aimed at mitigating the impact of automotive tariffs, as announced by the White House. The measures are expected to reduce certain duties on foreign parts included in U.S.-manufactured vehicles, easing the financial burden on importers.

White House Press Secretary Karoline Leavitt confirmed that the executive order, which addresses auto tariffs, would be unveiled later Tuesday. The administration revealed plans to offer reimbursement for previously paid tariffs on materials like aluminum and steel. The policy aligns with rewarding companies that manufacture domestically.

Automakers, including GM and Ford, have positively reacted to the proposed changes, indicating potential economic benefits. However, industry groups have expressed concern over the potential disruption and cost increases associated with new 25% tariffs on auto parts, which could affect global supply chains.

(With inputs from agencies.)