Trump to ease tariffs on automakers by rolling back some import duties
The Trump administration plans to ease some tariffs on automakers to ensure the companies aren't hit twice by its tariffs, which now apply a 25% import duty to car parts as well as 25% on steel and aluminum.
President Trump will travel to Michigan, the home base for the U.S. automobile industry, to mark his first 100 days of his second term.
"President Trump is building an important partnership with both the domestic automakers and our great American workers," Commerce Secretary Howard Lutnick said. "This deal will be a major victory for the president's trade policy by rewarding companies who are already manufacturing domestically, while providing a runway to manufacturers who have expressed their commitment in investing in America and expanding domestic manufacturing."
The 25% tariff on imported vehicles and auto parts will remain, but automakers won't be subject to the additional 25% import duty on imported steel and aluminum. Reimbursements will also be given to automakers who have already paid the double tariffs, the administration said.
John Elkann, chairman of Stellantis, whose brands include Chrysler, Dodge, Jeep and Ram, praised the Trump administration's move to soften auto industry tariffs.
"Stellantis appreciates the tariff relief measures decided by President Trump," he said in a statement. "While we further assess the impact of the tariff policies on our North American operations, we look forward to our continued collaboration with the U.S. Administration to strengthen a competitive American auto industry and stimulate exports."
Ford CEO Jim Farley expressed support for Mr. Trump's decision to cushion the auto industry from the impact of tariffs. Some vehicles could increase in price by as much as $10,000 due to the tariffs, analysts say.
"Ford welcomes and appreciates these decisions by President Trump, which will help mitigate the impact of tariffs on automakers, suppliers and consumers," Farley said in a statement. "We will continue to work closely with the administration in support of the president's vision for a healthy and growing auto industry in America. Ford sees policies that encourage exports and ensure affordable supply chains to promote more domestic growth as essential."
Tariffs still rattling car makersMeanwhile, General Motors on Tuesday postponed its first-quarter conference call to discuss its guidance and quarterly results from April 29 to May 1, so that it can assess potential tariff changes. GM posted strong financial results for its first quarter Tuesday, but said it will reassess its expectations for 2025 due to the Trump administration's tariffs.
"We believe the future impacts of tariffs could be significant, so we are reassessing our guidance and look forward to sharing more when we have greater clarity," GM Chief Financial Officer Paul Jacobson said during a media call Tuesday, according to CNBC. "The prior guidance can't be relied upon, and we'll come back to the market with clarity as soon as we have it."
The Associated Press contributed to this report.
Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.
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