Trump Administration Eases Auto Tariffs on Foreign Parts to Boost U.S. Manufacturing

Last Updated Apr - 29 - 2025, 02:00 PM | Source : Fela News

The Trump administration will reduce tariffs on foreign auto parts used in U.S.-made vehicles, aiming to support domestic automakers and protect jobs while keep

The Trump administration is set to ease the impact of auto tariffs by reducing duties on foreign parts used in domestically manufactured vehicles. This move aims to support U.S. automakers and workers while maintaining tariffs on fully imported cars. Commerce Secretary Howard Lutnick stated that the policy rewards companies investing in American manufacturing and provides time for others to expand domestically. According to The Wall Street Journal, automakers will no longer face overlapping levies, such as those on steel and aluminum, and will receive reimbursements for previous overcharges.

The announcement comes ahead of President Trump’s visit to Michigan, marking his first 100 days in office. Automakers, including General Motors and Ford, welcomed the changes, highlighting the reduced burden on suppliers and consumers. Industry leaders had previously warned that steep tariffs on imported parts could raise vehicle prices, disrupt supply chains, and harm smaller suppliers. A coalition representing companies like GM, Toyota, and Hyundai urged the administration to reconsider the proposed 25% tariffs, arguing that the consequences would include production halts, layoffs, and potential bankruptcies in the supply sector.