According to a Wall Street Journal report on Monday, U.S. President Donald Trump is expected to ease the impact of his automotive tariffs by ensuring they do not overlap with existing tariffs, such as those on steel and aluminum, and by reducing some tariffs on imported auto parts.
The changes would mean U.S. carmakers subject to Trump’s automotive tariffs would be exempt from additional duties, the report said, citing sources familiar with the matter. The relief would also apply retroactively, potentially allowing automakers to receive refunds for previously paid tariffs.
Additionally, Trump plans to revise the tariffs on imported car parts, enabling reimbursements of up to 3.75% of the value of a U.S.-manufactured vehicle for one year, the report added.
Trump’s 25% tariff on imported cars began in early April, while a similar tariff on foreign auto parts is scheduled to start on May 3.
He is expected to announce these adjustments before a campaign rally near Detroit, Michigan, on Tuesday evening, according to the Journal.
The planned relief appears aimed at giving automakers more time to realign their supply chains domestically, in line with the goals of Trump’s trade policies. His auto tariffs have raised concerns about rising vehicle prices in the U.S., as many domestically assembled cars still rely on a significant number of imported parts.
