The U.S. auto industry is getting some much-needed relief and clarity on tariffs from the White House amid all the looming uncertainty surrounding the levies.
The details: The Trump administration announced Friday that it will extend offset programs designed to lessen the impact of tariffs on automakers, while also providing new details on the proposed levies for heavy-duty trucks, reports NBC News.
The proclamation keeps existing tariff relief for U.S.-built cars in place through 2030 and adds a similar offset for trucks. Officials said imports covered by the U.S.-Mexico-Canada Agreement will stay exempt, but buses won’t make the cut.
The move also extends relief from separate tariffs applied to steel and aluminum products, lengthening the expiration of the offset programs from two years to five.
After posting plans on Truth Social in September to impose a 25% tariff on “big” trucks, Trump has followed through—officially enacting the levy beginning Nov. 1.
The White House is also imposing 10% tariff on buses, motor coaches, and similar vehicles starting Nov. 1
What they’re saying: “The priority is to expand domestic vehicle production in the United States to ensure that we have good, high-paying jobs for American workers,” a senior administration official said Friday (via NBC News).
Why it matters: Extending the auto offset programs gives U.S. automakers more stability and time to adjust operations—helping to reduce cost pressures on carmakers, suppliers, and dealers. However, the new 25% tariff on heavy-duty trucks could drive up prices for certain brands, particularly in the commercial vehicle segment.
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Between the lines: While the White House intends to maintain the auto tariff offsets through the end of Trump’s second term, it continues pressing companies to shift more overseas production back to U.S. soil.
“We are also creating an import adjustment offset program for automobile and truck engine manufacturers, and this program is designed to reward companies that make their engines in the United States,” said the senior official.
Bottom line: The extended offset programs are expected to help stabilize vehicle prices and inventory costs across most segments—allowing dealers to avoid sharp price spikes from manufacturers and potentially sustain steadier profit margins over the next several years.
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