- Trump’s new executive order halts stacking tariffs and gives automakers a rebate relief.
- Current 25% tariffs stay in place while new rebates cushion incoming auto parts fees.
- Automakers will receive a 3.75% tariff rebate for one year, then 2.5% next year.
In just a few days, automakers are going to face a new 25 percent tariff on cars and parts. Now, President Trump is relaxing some of the burdens these companies will face. A new executive order will provide a rebate to automakers who pay tariffs, and it’ll stop tariffs from stacking up.
var adpushup = window.adpushup = window.adpushup || {que:[]};
adpushup.que.push(function() {
if (adpushup.config.platform !== “DESKTOP”){
adpushup.triggerAd(“0f7e3106-c4d6-4db4-8135-c508879a76f8”);
} else {
adpushup.triggerAd(“82503191-e1d1-435a-874f-9c78a2a54a2f”);
}
});
Current tariffs of 25 percent on imported vehicles are remaining in place. The additional 25 percent tariff on auto parts is still going into effect on May 3, but this new measure should make both easier to swallow for automakers. It prevents tariffs, like those on steel and aluminum, from stacking up on these automakers.
More: Porsche’s Brutal Year Might Only Be Starting After China Sales Collapse
In addition, it’ll provide up to a 3.75 percent reimbursement on auto parts tariffs for a year. That percentage drops to 2.5 percent next year and then is phased out after two years. Essentially, it provides time for automakers who plan on moving more production to the U.S. to get that work done.
“President Trump is building an important partnership with both the domestic automakers and our great American workers,” Commerce Secretary Howard Lutnick said to The Wall Street 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.”
For now, the big three automakers are praising the action. “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. “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. Ford sees policies that encourage exports and ensure affordable supply chains to promote more domestic growth as essential.’’
Stellantis Chair John Elkann told CNBC that “Stellantis appreciates the tariff relief measures decided by President Trump. While we further assess the impact of the tariff policies on our North American operations, we look forward to our continued collaboration with the U.S. Administration to strengthen a competitive American auto industry and stimulate exports.”
Finally, Mary Barra of GM chimed in as well to say that the order helps to “level the playing field for companies like GM.”All of this comes after pressure mounted on Trump from dealers, automakers, and others.
var adpushup = window.adpushup = window.adpushup || {que:[]};
adpushup.que.push(function() {
if (adpushup.config.platform !== “DESKTOP”){
adpushup.triggerAd(“bb7964e9-07de-4b06-a83e-ead35079d53c”);
} else {
adpushup.triggerAd(“9b1169d9-7a89-4971-a77f-1397f7588751”);
}
});
var adpushup = window.adpushup = window.adpushup || {que:[]};
adpushup.que.push(function() {
if (adpushup.config.platform !== “DESKTOP”){
adpushup.triggerAd(“bb7964e9-07de-4b06-a83e-ead35079d53c”);
} else {
adpushup.triggerAd(“9b1169d9-7a89-4971-a77f-1397f7588751”);
}
});
