President Donald Trump is expected to sign an executive order Tuesday granting some relief from auto tariffs.
White House press secretary Karoline Leavitt said the president will sign an order on auto tariffs, declining to elaborate on specifics. While Trump has no signings listed on his public schedule, he will be making an appearance Tuesday in auto-heavy Michigan to celebrate 100 days in office.
Leavitt and Treasury Secretary Scott Bessent held an early news briefing Tuesday, which largely centered on tariff policy.
“President Trump has had meetings with both domestic and foreign auto producers,” Bessent said. “And he’s committed to bringing back auto production to the U.S. So we want to give the automakers a path to do that quickly, efficiently, and create as many jobs as possible.”
Reports emerged Monday evening that Trump would walk back some of his auto tariffs. The Wall Street Journal reported that import levies placed on foreign-made cars would not be subject to other tariffs and that some tariffs on foreign parts used on domestic cars could be removed.
Bessent also declined to go into detail.
“I can tell you that it will go substantially toward reshoring American auto manufacturing,” Bessent said. “The goal here is to bring back the high-quality industrial jobs to the U.S.”
The new policy could mean that importers paying auto tariffs won’t also have to pay Trump’s steel and aluminum tariffs, for example. Trump placed a 25% tariff on foreign-made autos earlier this month, though cars bearing labels that say they were assembled in the United States would also be exempt.
Duties on foreign auto parts are set to take effect Saturday.
On a call with reporters, administration officials went over the plan’s details, which included some convoluted math. The Trump administration will allow up to 15% of a vehicle’s parts to be foreign without being tariffed in the first year, followed by 10% in the second year, and then 0% in the third year.
The idea is that this timeline allows for car companies to shift parts manufacturing to the U.S.
“All cars that are finished in America that have 85% domestic content will now have no tariff whatsoever, so prices will not go up,” a senior administration official said.
The exemption will include foreign auto makers with plants in the U.S.
“This is designed to allow all of the domestic auto manufacturers to grow their plants, to grow their employment, and to build more factories in America,” the official said.
General Motors reported a 6.6% drop in profits during the first quarter of 2025. Executives said tariffs played only a small role, but that continued uncertainty could affect future earnings.
GM CFO Paul Jacobson warned that the future effect of tariffs could be significant.
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According to the New York Times, automakers may also be reimbursed for some tariff costs, which could help ease the pain and prevent significant price hikes from reaching consumers.
Polling shows the public souring on Trump’s tariff regime, with his approval ratings on the economy in particular sinking as he hits 100 days in office.
