President Donald Trump is set to take action to ease the impact of his tariffs on US car makers, a top White House official says.
“This deal is a major victory for the President’s trade policy by rewarding companies who manufacture domestically,” Commerce Secretary Howard Lutnick said in a statement provided to the Reuters news agency.
The president will announce measures to reduce some import duties on parts from abroad that are used in vehicles manufactured in the US.
In addition, while cars made outside the country will still be subject to automotive tariffs, they will not be hit with further levies like those on steel and aluminium products, the Wall Street Journal reported earlier.
Trump is due to hold a rally in Michigan on Tuesday to mark his first 100 days in office.
The state is home to the so-called Detroit Three carmakers – Ford, General Motors (GM) and Stellantis – and a network of more than 1,000 major suppliers to the industry.
Trump has put tariffs at the centre of his economic plans, describing it as “the most beautiful word in the dictionary”.
But they have sparked turmoil in global financial markets, caused major uncertainties for businesses and increased fears of a sharp economic slowdown.
The move to ease the impact on the motor industry has been seen as the latest attempt by his administration to show flexibility on the policy.
GM’s chief executive Mary Barra welcomed the development.
“We’re grateful to President Trump for his support of the US automotive industry and the millions of Americans who depend on us,” she told the BBC in an emailed statement.
“We appreciate the productive conversations with the President and his Administration and look forward to continuing to work together.”
Ford and Stellantis did not immediately respond to requests for comment.
Last week, a coalition of US motor industry groups called on the president to not impose 25% tariffs on imported car parts.
A letter to his administration from groups representing companies including GM, Toyota and Volkswagen said the levies “will lead to higher auto prices for consumers, lower sales at dealerships and will make servicing and repairing vehicles both more expensive”.
Trump had previously said the tariffs would come into effect by 3 May.
