US President Donald Trump has agreed to reduce the tariff burden on automakers impacted by multiple trade levies, according to reports from US media on Monday.
The decision, revealed ahead of Trump’s rally near Detroit on Tuesday night to mark his first 100 days in office, aims to support domestic car manufacturers.
According to *The Wall Street Journal*, which first reported the news, automakers currently paying 25% tariffs on imported vehicles will be exempt from paying additional duties on steel and aluminum. The administration also plans to offer partial reimbursements for foreign auto parts, with those specific tariffs previously scheduled to begin on May 3.
US car manufacturers have been heavily affected by tariffs, particularly on imports from Mexico and Canada—countries where Detroit-based firms continued to invest after Trump renegotiated the North American Free Trade Agreement during his first term.
Analysts have cautioned that the tariffs could raise vehicle prices, weaken sales, and threaten American jobs.
Commerce Secretary Howard Lutnick called the move “a significant step” toward strengthening domestic manufacturing.
“This deal represents a major victory for the president’s trade agenda. It supports companies already building in the US and creates space for others committed to investing and expanding here,” Lutnick said.
US automakers expressed appreciation for the relief measures.
“We’re thankful to President Trump for backing the US automotive industry and the millions of workers who rely on it,” said General Motors CEO Mary Barra.
