In a significant policy shift, President Donald Trump has signed executive orders easing portions of his administration’s 25% tariffs on automobiles and auto parts. This move comes amid mounting concerns from automakers that the tariffs could escalate vehicle prices, disrupt manufacturing, and undermine U.S. competitiveness.
The revised policy introduces rebates for vehicles assembled in the U.S. using foreign parts—3.75% in the first year and 2.5% in the second—aimed at reducing financial strain while automakers adjust supply chains and invest in domestic production.
While major automakers like Stellantis, GM, and Ford have welcomed the relief, industry analysts caution that the need for predictability and long-term investment complicates any rapid transition. Economists warn that broader tariffs could increase vehicle costs, reduce sales, and slow economic growth.
For the full story, read the original article here: AP News
