Trump signs executive order to lessen tariff burden on auto industry

President Donald Trump announced new executive orders on Tuesday aimed at reducing the tariffs he had imposed on the U.S. auto industry. The orders will ease the tariffs on automobile and auto part imports, a significant shift in Trump’s tariff policy amidst concerns from domestic industry groups.

The executive orders will make changes to the 25% tariffs that were recently placed on automobile imports, specifically by eliminating additional tariffs on imported aluminum and steel. They will also lower the upcoming 25% tariff on auto part imports used by U.S. manufacturers, as long as the vehicle includes at least 50% American-made parts or parts under the U.S.-Mexico-Canada Agreement.

This decision follows a letter sent to the White House by a coalition of U.S. and international carmakers, including General Motors and Hyundai, warning of the negative impacts of auto part tariffs. The coalition expressed concerns about potential price increases, reduced sales, higher maintenance costs, and possible job losses within the industry.

Trump has defended the tariffs, stating that they will encourage automakers to increase domestic production and potentially lead international companies to establish factories in the U.S. During a rally in Michigan, he emphasized the importance of bringing manufacturing back to the country and described the tariff adjustments as a way to support this goal.

Acknowledging potential criticism for changing his stance on tariffs, Trump explained that he is allowing some flexibility to the industry before enforcing stricter measures.