06:02 AM EDT, 04/30/2025 (MT Newswires) -- President Donald Trump has signed a proclamation to offer some relief to US automakers from his recently announced 25% vehicle and auto parts tariffs, The White House said Tuesday.
Autos and auto parts subject to Trump's new 25% Section 232 autos tariffs will no longer be also subject to other 25% tariffs that he has levied on steel and aluminum or on Canadian and Mexican goods tied to the US fentanyl crisis, according to the order
Automakers will be offered a credit of 3.75% of the total manufacturer's suggested retail price value of all vehicles assembled in the US between April 3, 2025, and April 30, 2026, that can be applied to an equal amount of duty-free parts imports, with the exception of China.
The credit moved down to 2.5% for the second year through April 30, 2027, then finishes altogether as an incentive for automakers to return parts production to the US.
The move "will more quickly reduce reliance on foreign manufacturing and importation of automobiles and automobile parts (and) strengthen United States vehicle assembly operations by encouraging companies to expand domestic production capacity," the order said.