Trump to ease blow from auto tariffs by giving car makers exemptions on steel, aluminum: report
President Trump is set to ease the impact of automotive tariffs by partially rolling back tariffs on imported car parts, sources familiar with the matter said.The move means automakers facing Trump’s 25% tariff on imported cars — which was implemented earlier this month — will not also have to pay separate tariffs on materials such as steel and aluminum, individuals briefed on the policy told the Wall Street Journal.The changes will be applied retroactively, allowing manufacturers to potentially receive refunds for tariffs already paid.Tariffs planned for imported auto parts, originally set at 25% and scheduled to begin on May 3, will also be adjusted.Automakers will be allowed reimbursement up to 3.75% of the value of each vehicle produced in the US during the first year.In the second year, reimbursements would decrease to 2.5%, eventually phasing out completely.These modifications come as Trump prepares for a rally near Detroit to mark 100 days since his return to office.Trump’s administration has been in frequent discussions with automakers about tariffs, which are viewed by the president and his supporters as a necessary means to spur domestic manufacturing.“President Trump is building an important partnership with both the domestic automakers and our great American workers,” Commerce Secretary Howard Lutnick told the Journal.“This deal will be a major victory for the president’s trade policy by rewarding companies who are already manufacturing domestically, while providing a runway to manufacturers who have expressed their commitment in investing in America and expanding domestic manufacturing.”Automakers welcomed the decision, acknowledging its potential to significantly alleviate pressures caused by tariffs.“Ford welcomes and appreciates these decisions by President Trump, which will help mitigate the impact of tariffs on automakers, suppliers and consumers,” Ford CEO Jim Farley said in a statement.“We will continue to work closely wit...