Trump Signs Order To Ease Tariffs on US Automakers
Moneylife Digital Team 30 April 2025
US president Donald Trump has signed an executive order aimed at reducing the economic impact of multiple ‘overlapping’ tariffs on the automotive industry.
  
Under the new order, automakers will no longer face both a 25% tariff on imported vehicles and a separate 25% tariff on steel or aluminum, easing pressure on the industry. 
 
The move comes after weeks of intense lobbying from US automakers, parts suppliers, and dealers who warned that excessive levies could lead to higher car prices, plant shutdowns, and job losses.
  
In a partial reversal of his earlier tariff policies, president Trump has granted automakers a two-year window to increase the percentage of domestic components used in vehicles assembled in the US.
  
The order will allow automakers to offset tariffs on imported auto parts used in US-assembled vehicles, up to 3.75% of the total value of the manufacturer’s suggested retail price (MSRP) through April 2026 and up to 2.5% of US production through 30 April 2027.
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