Trump Eases Auto Tariffs to Boost Domestic Manufacturing

U.S. President Donald Trump plans to sign an order easing tariffs for automakers producing vehicles in the U.S., providing relief from the new 25% vehicle tariffs. The move aims to encourage parts supply chains to return domestic, offering credits for vehicles assembled in the U.S.

In a bid to invigorate domestic auto manufacturing, U.S. President Donald Trump is poised to sign a new order aimed at offering relief to automakers building vehicles on American soil. The order will alleviate the burden of Trump's own 25% vehicle tariffs, granting crucial time for companies to localize their supply chains.

Commerce Secretary Howard Lutnick revealed that automakers are poised to receive significant credits, up to 15% of the value of U.S.-assembled vehicles. These credits can be used against the value of imported parts, providing a financial cushion for the industry.

Additionally, autos and parts impacted by the 25% Section 232 tariffs will be exempt from other duties, including those on goods from Canada and Mexico, as well as an array of other countries, marking a significant shift in trade policy.

(With inputs from agencies.)