Trump to Sign Executive Order to Ease his 25% Auto Tariffs / Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Trump will sign an executive order easing his 25% auto tariffs after industry concerns that the taxes could cripple U.S. auto manufacturing. Treasury Secretary Scott Bessent said the changes aim to protect domestic jobs. The move comes as Trump marks 100 days of his second term with a visit to Michigan.
Trump’s Auto Tariff Pivot: Quick Looks
- Trump to relax 25% auto and auto parts tariffs.
- Automakers warned tariffs could hike car prices by $4,700.
- Treasury chief Bessent says changes aim to boost U.S. jobs.
- Adjustments will prevent multiple tariffs on foreign-made vehicles.
- Retroactive relief for auto parts imported for U.S. manufacturing.
- Announcement coincides with Trump’s Michigan rally celebrating 100 days.
Trump to Sign Executive Order to Ease his 25% Auto Tariffs
Deep Look
Trump Set to Ease Auto Tariffs as Industry Sounds Alarm
WASHINGTON — President Donald Trump plans to sign an executive order Tuesday to roll back parts of his 25% tariffs on imported autos and auto parts, responding to fears the levies could cripple U.S. car manufacturing and spike prices.
White House press secretary Karoline Leavitt confirmed at a briefing that Trump would sign the order later in the day, though she declined to elaborate on the specifics.
Treasury Secretary Scott Bessent, appearing alongside Leavitt, explained that the administration’s goal is clear: to create a faster, more efficient pathway for automakers to expand U.S. production without punitive costs.
“President Trump has met extensively with domestic and international automakers,” Bessent said. “He’s committed to bringing auto jobs back to the U.S. — quickly and on a larger scale.”
Key Changes in the Executive Order
According to The Wall Street Journal, the executive order will modify tariff enforcement in several critical ways:
- Avoiding “tariff stacking,” where multiple taxes are applied to the same vehicle.
- Reducing tariffs on auto parts essential for domestic car assembly.
- Making some tariff relief retroactive, providing financial relief for manufacturers who already paid the higher rates.
The move is seen as a significant course correction. Trump’s original auto tariffs, intended to pressure trading partners and revive American manufacturing, faced fierce industry backlash. Analysts warned that unaltered tariffs could add up to $4,711 to the price of a new car, according to economist Arthur Laffer — a key Trump ally.
Political and Economic Stakes
The timing is crucial: Trump is marking 100 days of his second term with a rally in Michigan, a state emblematic of America’s car industry and his political fortunes. Trump captured Michigan last November by promising to grow factory jobs, and automakers’ fortunes are tightly tied to his trade policies.
Still, while easing auto tariffs could blunt some immediate damage, economists caution that Trump’s broader protectionist approach — heavy tariffs on other imports — still poses risks. Many warn that higher consumer prices and slower economic growth could eventually erode the very gains Trump hopes to achieve.
As the administration continues trade negotiations, it remains to be seen if today’s executive order is a singular adjustment — or a broader signal that Trump’s trade strategy may evolve under pressure from key industries.
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