Automobile workers at the Smyrna vehicle assembly plant in Nissan in Tennessee on June 6, 2022. The factory employs thousands of people and produces a variety of vehicles, including the EV sheet and the Rogue crossover.
Michael Wayland / CNBC
DETROIT – President Donald Trump signed an executive decree that softening some of the automotive tariffs that his administration has set up earlier this month on Tuesday, while the automotive industry is facing regulatory uncertainty and additional costs due to samples.
The 25% prices on vehicles imported in the United States will continue, but the new measures aim to reduce the overall rate level on vehicle imports that had resulted from separate direct debits – such as additional 25% tariffs on steel and aluminum – “stack” each other.
Under the order, 25% additional rates on automotive parts who had to start before May 3 will also have in force, but vehicles that go through a final assembly in the United States will be able to qualify for partial reimbursements on these samples for two years.
These reimbursements related to parts include potential compensation of an amount equal to 3.75% of the value of a car manufactured in the United States assembled before May 1, 2026. After that, the reimbursement ceiling is lowered to 2.5% of the value of the car until April 30, 2027, according to the order.
The administration said it has calculated these prices by applying a right of 25% to 15% of the value of a vehicle assembled in the United States in the first year, and from 25% to 10% of this value in the second year.
We do not know how a car manufacturer would get such a refund, but the offer is retroactive when the prices came into force on April 3.
“We just wanted to help them during this little transition,” Trump said on Tuesday. “If they can’t get parts, we didn’t want to penalize them.”
Trump is expected to visit Michigan on Tuesday to celebrate his first 100 days in the oval office.
The softening on car rates follows car manufacturers and auto policies groups that put pressure on Trump administration for a certain relief, in particular the “stacking” effect of several tasks.
Last week, six of the main political groups representing the American automotive industry, including the Alliance for Automotive Innovation which represents most of the major car manufacturers, joined in a unusual manner to put pressure on the Trump administration against the implementation of upcoming prices on automotive parts.
“President Trump said an opening to reconsider 25% prices of the administration on imported automotive parts – similar to recently approved pricing alleviation for consumer electronics and semiconductors. It would be a positive development and welcome relief,” groups said in a letter to Trump officials.
The groups – representing franchise concessionaires, suppliers and almost all major car manufacturers – said that the next samples could compromise automobile production and noted that many car suppliers were already “in distress” and would not be able to afford additional cost increases, which causes larger problems in the industry.
Before the company, report its first quarter results on Tuesday, General Motors Financial director Paul Jacobson told journalists that “the future impacts of prices could be important”.
In response to regulatory uncertainty and expected cost increases, GM interrupted its directives in 2025, which did not take into account the prices; suspended stock buyouts; And delayed his call to two -day quarterly investor until Thursday.
Jennifer Safavian, CEO of Autos Drive America, which represents the main foreign car manufacturers operating in the United States, described new actions as “a little welcome for car manufacturers, but it is necessary to do more”.
Safavian urged Trump to create “a pro-growth and regulatory climate so that American production prosperous”.
The traditional Detroit car manufacturers have expressed their appreciation for expected changes, but continue to deal with significant cost increases.
“Ford welcomes and appreciates these decisions by President Trump, which will help alleviate the impact of prices on car manufacturers, suppliers and consumers”, ” Ford CEO Jim Farley said on Tuesday in a statement sent by email.
The president of Stellantis, John Elkann, echoes these remarks: “Stellantis appreciates the price rescue measures decided by President Trump. Although we assess the impact of pricing policies on our North American operations, we are impatiently awaiting our continuous collaboration with the American administration to strengthen a competitive American automotive industry and stimulate exports.”
GM CEO Mary Barra also thanked Trump, saying that “helped level the rules of the game for companies like GM and allowing us to invest even more in the American economy.