Washington. President Donald Trump signed executive orders Tuesday to ease some of his 25 percent tariffs on automobiles and auto parts, the White House said, a significant reversal as the import taxes threatened to hurt domestic manufacturers.

Automakers and independent analysts had warned that the tariffs could drive up prices, reduce sales, and weaken US competitiveness in global markets. Trump framed the changes as a temporary bridge to help automakers shift more production to the United States.

“We just wanted to help them during this little transition, short term,” Trump told reporters. “We didn’t want to penalize them.”

Treasury Secretary Scott Bessent, speaking at a White House briefing earlier Tuesday, said the administration’s goal is to boost domestic manufacturing jobs.

“President Trump has had meetings with both domestic and foreign auto producers, and he’s committed to bringing back auto production to the US,” Bessent said. “We want to give automakers a path to do that quickly and efficiently, and to create as many jobs as possible.”

One of the orders signed Tuesday modifies the 25 percent auto tariffs, making it easier for vehicles assembled in the US with foreign parts to avoid prohibitively high import taxes. The revised policy includes a rebate of 3.75 percent of the vehicle’s sales price for one year, reflecting the portion of imported parts that make up roughly 15% of a vehicle. In the second year, the rebate would be reduced to 2.5 percent as more parts are expected to be sourced domestically.

A senior Commerce Department official, speaking on condition of anonymity to preview the order, said automakers told the administration that they needed time to ramp up new factory construction and realign supply chains. The official added that companies are expected to announce new shifts, hires, and facilities within the next month.

Industry Responds

Stellantis Chairman John Elkann welcomed the changes, saying the company appreciates the tariff relief.

“While we further assess the impact of the tariff policies on our North American operations, we look forward to continued collaboration with the US administration to strengthen a competitive American auto industry and stimulate exports,” Elkann said in a statement.

General Motors CEO Mary Barra thanked Trump for his support and said GM looks forward to continued dialogue with the administration.

“We believe the president’s leadership is helping level the playing field for companies like GM and allowing us to invest even more in the US economy,” she said.

Ford CEO Jim Farley emphasized that his company already does more manufacturing in the US. than its competitors.

“We will continue to work closely with the administration in support of the president’s vision for a healthy and growing auto industry in America,” Farley said. “If every company matched Ford’s American manufacturing ratio, 4 million more vehicles would be assembled in America each year.”

Still, the policy shift may not ease concerns in an industry that values long-term stability, said Sam Fiorani, an analyst at AutoForecast Solutions.

“Finding a way to get the auto industry back to work has to be paramount,” Fiorani said. “Tariffs have not accounted for how this industry operates. You can’t just flip a switch and move production. It takes months, usually years,and hundreds of millions, if not billions, of dollars.”

Trump’s move comes as he marks 100 days in office with a trip to Michigan, a key auto manufacturing state that he won in last year’s election with promises to boost factory jobs.

Still, economists caution that the broader tariff strategy could hurt the US economy. While the relief may benefit automakers in the short term, the full impact of Trump’s trade policies remains uncertain.

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