Trump Seeks Auto Tariff Relief by Offering Steel and Aluminum Exemptions to Automakers – One America News Network
OAN Staff James Meyers
10:03 AM – Tuesday, April 29, 2025
The Trump administration announced on Tuesday that automotive tariffs on imported car parts will be reduced.
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This rollback means automakers facing the 25% tariff on foreign vehicles, implemented in early April, will no longer incur separate costs for materials such as aluminum and steel, according to the Wall Street Journal (WSJ).
Additionally, changes will be retroactive during this rollback, allowing manufacturers to potentially receive rebates for tariffs already paid. Tariffs on imported auto parts, originally set at 25% to begin on May 3rd, will also be modified.
The new policy will grant automakers reimbursement of up to 3.75% of each vehicle’s value produced in the U.S. during the first year of implementation.
In subsequent years, reimbursements will reduce to 2.5% and will eventually be phased out completely.
The 47th president is expected to sign this order before heading to a Michigan rally celebrating the first 100 days of his administration.
Recently, the Trump administration has been in discussions with automakers about tariffs, emphasizing that this is crucial for boosting domestic manufacturing.
“President Trump is fostering a significant partnership with domestic automakers and American workers,” stated Commerce Secretary Howard Lutnick in an interview with the WSJ.
“This agreement represents a notable achievement for the president’s trade policy by rewarding companies that manufacture domestically, while encouraging those committed to investing in and expanding U.S. production.”
Automakers have responded positively to the announcement.
“Ford supports and appreciates President Trump’s decisions, which will help lessen the impact of tariffs on automakers, suppliers, and consumers,” said Ford CEO Jim Farley in a statement.
“We remain committed to collaborating with the administration to support the president’s vision for a thriving auto industry in America.”
Farley emphasized that his company views policies promoting exports and ensuring affordable supply chains as essential for domestic growth.
General Motors (GM) CEO Mary Barra also praised the announcement, remarking: “We value the constructive dialogue with the president and his administration and look forward to ongoing collaboration.”
The recent measures provide automakers additional time to transition their supply chains to the U.S.
According to the WSJ, automakers must apply for the reimbursements, though the process for disbursing these refunds remains unclear.
Morgan Stanley has projected an average vehicle price increase of $6,000, translating to a consumer price increase of 10% to 12%.
The Trump administration continues ongoing negotiations with numerous countries following the suspension of broad tariffs on April 9th. The White House insists on advancing trade agreements with other nations, claiming there have been 18 one-for-one proposals presented.
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