Trump Shifts Gears: Auto Tariff Relief Accelerates US Manufacturing Comeback, Says Lutnick

Unknown Apr 02, 2026 800 Views

President Trump will sign an executive order on Thursday granting automakers relief from his recently issued 25% car tariffs to automakers who build cars within the United States. Commerce Secretary Howard Lutnick said that the action will help provide a grace period so manufacturers can reshore...

Manufacturers will receive credits under the new policy for up to 15% of the value of vehicles that are made in the US, and they will apply those credits to offset the value of foreign components. The action is part of an effort to ease the burden of tariffs while enticing firms to bring back more manufacturing and supply chains onto American soil.

The relief comes as Trump is in Michigan celebrating his first 100 days in office, a state with prominent automakers like Ford, General Motors, and Stellantis and a large network of suppliers. The decision comes after weeks of pressure from the industry and threats the tariffs would increase car prices, reduce sales, and put jobs at risk.

General Motors CEO Mary Barra also welcomed the news, saying, "We believe the president's leadership is helping level the playing field for companies like GM and allowing us to invest even more in the U.S. economy." Ford CEO Jim Farley seconded the motion, saying the changes "will help mitigate the impact of tariffs on automakers, suppliers and consumers."

Although relief is likely to be temporary, analysts warn that continued uncertainty over tariff policy can continue to shape investment decisions in the US auto industry.

Source: ReutersPresident Trump will sign an executive order on Thursday granting automakers relief from his recently issued 25% car tariffs to automakers who build cars within the United States. Commerce Secretary Howard Lutnick said that the action will help provide a grace period so manufacturers can reshore parts supply chains and increase domestic production.

Although relief is likely to be temporary, analysts warn that continued uncertainty over tariff policy can continue to shape investment decisions in the US auto industry.

Source: Reuters

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