Trump to scale back some import tariffs for automakers

President Donald Trump on Tuesday signed an executive order to soften some taxes on imported cars and components. Under the order, auto manufacturers will be shielded from paying levies on both imported parts and raw materials used to build parts. The Trump administration has instituted a 25% tariff on imported vehicles and components plus a 25% import duty on steel and aluminum. But for vehicle makers, the tariffs will not be stacked and companies that assemble cars in the United States will receive some relief from tariffs on auto parts. The reduction in tariffs will be retroactive. Tariffs imposed on imports from China are not included in the change.

The Trump administration is focused on bringing auto production back to the United States, Treasury Secretary Scott Bessent said.

How have vehicle manufacturers been affected by tariffs so far? General Motors on Tuesday postponed its first-quarter revenue call to May 1 after reporting $44 billion in revenue for the first months of 2025. Ford and Stellantis have not reported their first-quarter earnings. Economic analysts have estimated the tariffs could cost American consumers up to $30 billion in the first full year. The Trump administration maintains that tariffs work as a tool against national security threats and and to achieve economic and strategic objectives.

What else is happening in the industry? Ford CEO Jim Farley on Wednesday told CNN that the company would extend its discount program through July 4 to encourage more consumers to buy cars. Prices will likely rise after that, Farley said, as imports this week take effect on parts that the manufacturer cannot obtain domestically.

Dig deeper: Read Carolina Lumetta’s report about the power struggle between Trump and lawmakers over his tariffs.