By Joke Kujenya
UNITED STATES of America (USA) President Donald Trump is poised to reverse course on a key trade policy, signing an executive order to ease portions of the 25 percent tariffs previously levied on imported cars and their parts.
The White House confirmed the order will be signed Tuesday, following months of sustained lobbying from auto manufacturers who warned the import taxes were undercutting domestic production and global competitiveness.
Automakers had raised alarms that the tariffs—introduced in the midst of a wider protectionist push—were disrupting supply chains and driving up costs across the industry.
Though the White House has offered few specifics on which tariffs will be rolled back, the announcement marks the third abrupt policy shift targeting the auto sector this year.
At a press briefing, White House Press Secretary Karoline Leavitt declined to elaborate on the executive order’s exact terms but confirmed the president would move ahead later in the day.
Treasury Secretary Scott Bessent, standing alongside Leavitt, said the initiative was designed to boost domestic manufacturing jobs.
“President Trump has had meetings with both domestic and foreign auto producers, and he’s committed to bringing back auto production to the US,”
Bessent said. “So, we want to give the automakers a path to do that—quickly, efficiently, and create as many jobs as possible.”
Publicly, the industry responded with cautious approval. Stellantis Chairman John Elkann welcomed the easing of tariff measures, calling the decision “appreciated” and pledging continued collaboration with the administration to “strengthen a competitive American auto industry and stimulate exports.”
Behind the scenes, however, industry executives expressed growing frustration at the lack of consistency from Washington.
The administration had already stunned automakers earlier this year with surprise tariffs on Canadian and Mexican vehicle imports, despite no such moves being flagged during the campaign.
Industry insiders say the shifting policies are making it harder to plan and even harder to price.
“The singling out of our industry has put us at a major disadvantage,” one executive told DailyMail.com.
The 25 percent automotive tariffs introduced after the initial steel and aluminium duties sent shockwaves through the sector. Though the latest reversal hints at a willingness to compromise, analysts believe it won’t make much difference for American car buyers in the short term.
“For consumers, business as usual,” said Erin Keating, senior director of economics and industry insights.
“While the proposed changes are a signal of Trump’s willingness to take industry input into consideration when implementing tariffs, they don’t materially change the cost implications and of course have not been declared officially.”
Keating urged flexibility among car shoppers, recommending buyers act swiftly to avoid looming cost increases.
“There is a tariff-free sales event happening right now,” said Mike Stanton, president and CEO of the National Automobile Dealers Association, during a conference at the New York International Auto Show earlier this month.
“If you’re part of (a group of interested EV buyers), do it now.”
