This is what a real president does.
DETROIT, MI — President Donald J. Trump signed a bold executive order Tuesday that reduces auto tariffs for manufacturers, a strategic move to protect American jobs, support U.S. automakers, and put consumers first.
Under this new policy, automakers facing the 25% import tariff on foreign-built vehicles — enacted earlier this month — will now be shielded from double tariffs on key materials like steel and aluminum. The rollback is retroactive, meaning manufacturers may be eligible for refunds on past payments, according to senior White House officials.
This move aligns with President Trump’s America First economic agenda, which emphasizes domestic manufacturing, job creation, and fair trade.
🇺🇸 Rewarding American-Made Vehicles
The order provides huge incentives for automakers who build in the USA. Vehicles made with 85% or more U.S.-made components will now be fully exempt from tariffs.
For all other vehicles, Trump’s policy creates a phased reimbursement system:
- Year 1: Up to 3.75% of the vehicle’s value
- Year 2: Reduced to 2.5%
- Year 3: Phases out completely
This structure offers breathing room for companies as they restructure supply chains and ramp up domestic production.
🔧 A Pro-Growth, Pro-Worker Approach
The announcement comes as President Trump prepares to hold a major rally in Michigan — celebrating 100 days since returning to the Oval Office.
“This is about restoring American industry and protecting our workers,” said Commerce Secretary Howard Lutnick. “President Trump is making sure our trade policies benefit American companies, not foreign competitors.”
The rollback follows constant engagement between the administration and top automakers, who warned that the original 25% tariff risked harming both production and consumer affordability.
🚗 Automakers Praise Trump’s Leadership
Industry leaders say the move will help stabilize supply chains, protect factory jobs, and contain vehicle prices.
“Ford welcomes President Trump’s decision. It will help us keep costs down and protect American jobs,” said Ford CEO Jim Farley.
GM CEO Mary Barra also praised the president’s responsiveness, saying: “We look forward to continued collaboration with the administration to expand U.S. manufacturing.”
Companies like Hyundai and Mercedes-Benz are temporarily absorbing the extra costs, while others — including Audi and Mitsubishi — are halting deliveries as they reassess production strategies under the new rules.
📉 Avoiding Higher Car Prices for Families
Analysts had warned that Trump’s original tariff could increase car prices by up to $6,000 per vehicle. This rollback helps avoid those spikes, especially for seniors and working families who rely on affordable transportation.
President Trump had previously warned automakers not to pass costs onto consumers, emphasizing that “Made in America” must also mean affordable and competitive.
🔄 Part of a Larger Trade Strategy
This auto tariff adjustment is part of a broader economic shift under Trump’s leadership. Earlier this month, the White House paused several aggressive trade measures and scaled back rhetoric toward China — after American businesses called for relief.
Trump’s team is currently negotiating with over a dozen countries. While no deals are finalized yet, officials say 18 trade proposals are under review and major agreements are expected soon.
Bottom line: President Trump’s auto tariff rollback is a strategic win for American jobs, manufacturing, and consumers — and a clear sign that the White House is serious about making America stronger, more competitive, and more self-reliant.