Press Release: Trump Signs Executive Order to Ease Tariffs on Auto Imports
Press Release: Trump Signs Executive Order to Ease Tariffs on Auto Imports

Press Release: Trump Signs Executive Order to Ease Tariffs on Auto Imports
FOR IMMEDIATE RELEASE
Washington D.C. – In a move aimed at supporting the US automotive industry, President Donald Trump has signed an executive order to prevent cumulative tariffs on imported products and parts for US automakers. The order, signed on April 30, 2025, is expected to provide relief to the industry and promote domestic production.
Key Provisions of the Executive Order
– *Tariff Exemptions*: The order exempts imported automobiles from separate tariffs on aluminum and steel, preventing multiple levies from piling up on top of each other.
– *Auto Parts Tariffs*: A 25% tariff on imported auto parts will be offset by credits worth up to 3.75% of the value of American-made vehicles for the first year, 2.5% for the second year, and will be phased out thereafter.
Retroactive Applicati: The order applies retroactively to imports since the tariffs took effect on April 3, 2025, with overpaid levies due to stacking to be refunded.
Industry Reaction
The American Automotive Policy Council, representing Ford, GM, and Stellantis, has welcomed the clarification on tariffs, stating that applying multiple tariffs to the same product or part was a significant concern for American automakers. However, some analysts believe that the 25% auto tariffs will still raise car prices and slow auto sales.¹ ²
Impact on the Industry
While the executive order provides some relief, its impact on the industry remains to be seen. Automakers will continue to face challenges, including uncertainty around policy flux and bilateral negotiations between the US and its trading partners. Nevertheless, the order is seen as a positive step towards stabilizing the industry and promoting domestic production.