Trump Eases Auto Tariffs Amid Industry Pressure

President Donald Trump has eased his previously imposed 25% tariffs on imported cars and auto parts following concerns from automakers, suppliers, and dealers about increased costs and potential job losses. The new executive action prevents the stacking of multiple tariffs—such as those on both cars and steel or aluminum—by ensuring only the highest tariff applies, and introduces transitional credits for U.S. manufacturers to bolster domestic supply chains. Manufacturers will have a two-year period to adapt, with additional credits available for vehicles assembled domestically, and car parts from Canada and Mexico that comply with North American trade rules are exempt. Treasury Secretary Scott Bessent described these moves as efforts to reshore automotive jobs and support the U.S. auto industry, although negotiations with major trading partners, aside from China, remain ongoing. Trump has maintained higher tariffs on Chinese imports, while most other countries now face a 10% baseline levy. The administration defends these measures as part of a broader push to strengthen American manufacturing and trade competitiveness.