Trump Eases Auto Tariffs Ahead of Detroit Visit Amid Industry Pressure

By Staff, Agencies

US President Donald Trump’s administration is set to soften the impact of automotive tariffs by reducing duties on foreign parts used in domestically manufactured vehicles and avoiding compounded levies on cars produced abroad.

The move is expected to be officially announced during Trump’s visit to Michigan on Tuesday, where he will mark the first 100 days of his second term.

Commerce Secretary Howard Lutnick described the decision as a “major victory” for Trump’s trade strategy, rewarding companies that invest in domestic production while offering flexibility to those expanding US operations. The Wall Street Journal first reported that automakers would no longer face overlapping tariffs—such as those on steel and aluminum—and could receive reimbursements for prior payments.

A White House official confirmed the policy shift, signaling a rare softening of the administration’s aggressive tariff agenda, which has unsettled markets and raised concerns about a broader economic slowdown.

Automakers had anticipated relief ahead of Trump’s Michigan rally, given the state's status as the heart of the US auto industry. General Motors CEO Mary Barra said the decision would support further investment in the US, while Ford CEO Jim Farley emphasized the benefits to automakers, suppliers, and consumers.

Industry leaders had recently warned the administration against implementing a proposed 25 percent tariff on imported auto parts, arguing it would raise prices, cut sales, and disrupt supply chains. A joint letter from automakers—including GM, Toyota, Volkswagen, Hyundai, and others—highlighted the financial fragility of many suppliers, cautioning that even a single supplier failure could halt production.

Despite earlier threats to impose new tariffs by May 3, the administration appears to be recalibrating in response to mounting industry pressure and potential economic fallout.