President Donald Trump is expected to sign an executive order on Tuesday that aims to ease the impact of his administrationโs automotive tariffs, according to a Reuters report citing the White House. The order is designed to offer targeted relief to U.S. automakers and parts suppliers by reducing duties on foreign components used in domestically assembled vehicles.
White House Press Secretary Karoline Leavitt stated that the measure would help prevent companies from being subjected to double tariffsโone on the final imported vehicle and another on essential raw materials such as steel and aluminum. โThe President will sign the executive order on auto tariffs later today, and we will release it, as we always do,โ Leavitt said during a press briefing alongside Treasury Secretary Scott Bessent.
The policy announcement comes as President Trump visits Michigan to commemorate the first 100 days of his second term in office. Michigan, home to the Detroit Three automakers and a hub for more than 1,000 auto suppliers, has been central to the administrationโs manufacturing and trade agenda.
According to The Wall Street Journal, which first broke the story, the order will also allow companies that have already paid tariffs on imported materials to receive reimbursements. This is intended to offset cost pressures and encourage further domestic investment.
Commerce Secretary Howard Lutnick described the move as a “major victory” for the administrationโs trade policy, saying it rewards manufacturers committed to expanding operations in the U.S. โThis deal provides meaningful relief and runway to companies investing in American jobs and production,โ he told Reuters.
The announcement follows growing pressure from auto industry groups, which have warned that a proposed 25% tariff on imported auto parts could drive up vehicle prices and hurt sales. President Trump had previously indicated plans to implement the tariff by May 3, though the executive order appears to signal a more flexible approach.
If you like this post, please share it with others on social media. Follow Anchor Biz IT on LinkedIn.