Trump poised to soften tariff blow for automakers

US media reported on Monday that President Donald Trump has agreed to ease the burden of tariffs on automakers affected by several trade levies.

This development comes just ahead of a Trump rally scheduled for Tuesday night near Detroit, where he will celebrate his first 100 days in office.

According to The Wall Street Journal, which initially broke the news, the change means that companies facing a 25% tariff on imported vehicles will no longer be subject to additional duties, such as those imposed on steel and aluminum.

The administration is reportedly permitting certain reimbursements on imported auto parts, with levies that were initially set to take effect on May 3, according to the Journal, which cited sources who wished to remain anonymous.

U.S. automakers have faced significant challenges, as tariffs have impacted imports from both Mexico and Canada.

Even after President Trump renegotiated the North American Free Trade Agreement (NAFTA) during his first term, car manufacturers in Detroit continued their investments in these markets.

Experts have cautioned that these tariffs could lead to increased prices, potentially reducing car sales in the U.S. and putting jobs at risk.

Commerce Secretary Howard Lutnick remarked that Trump was "creating a vital partnership," according to the Wall Street Journal.

"This agreement marks a significant win for the president’s trade strategy," Lutnick stated.

"It benefits companies that are already producing within the country and offers a clear path forward for manufacturers planning to invest in and grow their operations in the U.S."

American car manufacturers responded positively to the development.

"We appreciate President Trump’s continued backing of the U.S. auto industry and the livelihoods of the millions of Americans it supports," said Mary Barra, CEO of General Motors.