WASHINGTON – The Trump administration announced plans on April 29 to soften the impact of sweeping automotive tariffs, offering relief to manufacturers who build vehicles in the United States while maintaining pressure on foreign-made cars.
Commerce Secretary Howard Lutnick described the move as a “major victory” for President Donald Trump’s trade agenda, saying it rewards companies committed to domestic manufacturing. “This deal is a win for American workers and automakers, and it encourages investment in our own production lines,” Lutnick said in a White House statement.
The new measures will prevent overlapping tariffs, particularly on carmakers already facing duties on imported steel and aluminum. Automakers will also be reimbursed for certain levies previously paid, according to officials and first reported by The Wall Street Journal. A senior administration official confirmed the decision would be formalized on April 29.
The announcement comes as Mr. Trump visits Michigan to mark his first 100 days in office—a milestone during which his administration has aggressively reshaped the country’s trade policies.
The automotive industry has voiced strong concerns in recent weeks over proposed 25% tariffs on imported auto parts, expected as early as May 3. Industry leaders warned that the added costs would lead to higher car prices, disrupted supply chains, and job losses across the U.S. auto sector.
A coalition of carmakers, including GM, Toyota, Volkswagen, and Hyundai, sent a letter last week urging restraint, noting that even a single supplier failure could stall production lines. “Most suppliers cannot withstand a sudden disruption from tariffs. Many are already financially strained and face layoffs or closure,” the letter stated.
General Motors CEO Mary Barra welcomed the relief, saying it would allow the company to deepen its U.S. investments. Ford’s CEO Jim Farley echoed that sentiment, noting the changes would ease burdens for manufacturers, suppliers, and consumers alike.
With this latest adjustment, the Trump administration is signaling some flexibility in its otherwise aggressive tariff strategy, which has rattled markets and international partners while redrawing the landscape of global trade.