President Trump prepares slight relief on auto tariffs—with strings attached

Earlier today, the White House confirmed that President Trump will sign an executive order, softening automakers’ exposure to auto tariffs.

What’s changing: The 25% tariffs on imported automobiles and parts will stay intact, but they will not be “stacked” with other tariffs like those on aluminum and steel. Which means automakers will not be responsible for paying tariffs on those metals in addition to the tariffs on imported cars and parts, reports the Wall Street Journal. 

• The catch is, the exemptions are retroactive. Auto manufacturers will have to pay the levies upfront, then file for a refund.

• On top of that, U.S.-based automakers will be eligible for tariff reimbursements on imported car components starting this Saturday, May 3.

• They’ll be reimbursed 3.75% of a car’s value for the first year, 2.5% for the second. After that, the reimbursements will stop.

In short—the policy buys time for domestic manufacturing while global supply chains stay tangled.

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