Donald Trump's 100 days gift to US carmakers: Plans to ease auto tariffs on foreign parts imports

US President Donald Trump is set to ease the impact of his auto tariffs by lifting some duties on foreign autopart imports into the United States, reported the news agency Bloomberg on Tuesday, April 28.

According to the news portal The Guardian's report, Trump is set to sign the executive order on auto tariffs on his 100th day in office since his White House comeback in January 2025. 

The US automakers are set to get relief from 25% vehicle tariffs, which will enable them to bring parts supply chains back to the US. 

According to a Reuters report citing Commerce Secretary Howard Lutnick, the automakers would receive credits for up to 15 per cent automakers will receive credits for up to 15 per cent of the value of vehicles assembled in the US that could be applied against the value of imported parts. 

Autos and parts are subject to the 25 per cent section 232 steel and aluminium tariffs, will no longer be subject to other tariffs, as per the report. 

“This deal is a major victory for the president’s trade policy by rewarding companies who manufacture domestically while providing runway to manufacturers who have expressed their commitment to invest in America and expand their domestic manufacturing,” said US Commerce Secretary Howard Lutnick in an email statement to the news agency.

The reports also mentioned that President Donald Trump is preparing for his trip to Michigan, the heart of the automobile industry, to mark his 100 days in the White House.

This move will be beneficial for the companies that import foreign parts for their car and truck manufacturing in the United States. 

Imported automobiles also would give a respite from separate tariffs on aluminium and steel, an effort to prevent multi-level tariffs on top of each other, reported the news agency, citing a White House official.

A proclamation setting the changes in motion is likely to be signed as early as Tuesday, April 29, said the official cited in the report.

The changes are expected to be implemented before the 25 per cent tariffs on foreign auto parts imports on May 3, 2025.

According to the official, under the planned changes, automakers could secure a partial reimbursement for tariffs on imported auto parts based on the value of their US car production. 

Automakers' take on tariff easing

US automakers like Ford and GM appreciated Trump's move and supported his take on the tariff levies for the US economy.

“Ford welcomes and appreciates these decisions by President Trump, which will help mitigate the impact of tariffs on automakers, suppliers and consumers. We will continue to work closely with the administration in support of the president’s vision for a healthy and growing auto industry in America,” Jim Farley said in a statement, as per the agency report.

“We believe the president’s leadership is helping level the playing field for companies like GM and allowing us to invest even more in the US economy,” said Mary Barra, the CEO of GM, according to the report.