Trump to Sign Executive Order Easing Auto Tariffs to Boost U.S. Car Manufacturing

By Evans Momodu, updated 16:41

President Trump will sign an executive order to ease auto tariffs, aiming to revitalise domestic auto production. Learn what it means for car prices, jobs, and the U.S. auto industry.

In a major policy shift, President Donald Trump will sign an executive order on Tuesday to ease auto tariffs, a move aimed at jumpstarting domestic vehicle production and providing relief to car manufacturers and consumers alike.

White House Press Secretary Karoline Leavitt confirmed the announcement during a morning briefing, describing it as part of the administration’s push to "reshore American auto manufacturing." Treasury Secretary Scott Bessent, standing alongside Leavitt, said Trump has held extensive talks with both U.S. and foreign automakers to craft a more business-friendly path forward.

“We want to create the conditions for automakers to build in the U.S. quickly, efficiently, and in a way that maximises job creation,” Bessent said.

Although exact details of the executive order remain scarce, reports suggest that the administration will implement a new tariff structure that prevents overlapping import taxes, which have significantly raised the cost of manufacturing and purchasing vehicles.

Currently, U.S. car imports are subject to a 25% tariff, in addition to separate 25% tariffs on steel and aluminum, critical components in automotive production.

According to The Wall Street Journal, the revised structure would streamline tariffs to avoid "stacking" penalties, particularly for manufacturers committed to building or expanding operations in the U.S.

“This is a win for the President’s trade agenda,” said Commerce Secretary Howard Lutnick. “It rewards domestic production while giving international automakers a clear incentive to invest in American jobs and facilities.”

Automakers and industry leaders have welcomed the announcement as a potential lifeline in a volatile policy environment. However, Trump’s swift and unpredictable tariff decisions over his first 100 days in office have created uncertainty across the supply chain.

Car dealers and consumers have been bracing for steep price increases, with analysts estimating that current tariff policies could raise vehicle costs by thousands of dollars and significantly reduce inventory.

The impact is particularly acute because even cars assembled in the U.S. typically include imported parts, many of which were also expected to be hit with new tariffs starting as soon as this Saturday.

The executive order is expected to be signed later today during President Trump’s visit to Michigan, the heart of America’s auto industry. The trip marks the 100-day milestone of his second term and comes amid growing pressure to deliver economic wins in key manufacturing states.

While the rollback may bring some immediate relief, experts warn that long-term market stability depends on clearer, more consistent trade policy.

“The back-and-forth on tariffs has shaken confidence,” said one industry analyst. “We need predictability to plan production, supply chains, and pricing strategies.”

As the administration pivots from hardline tariffs to incentivised domestic investment, the next moves from both U.S. and foreign automakers will determine how quickly the industry can adapt—and whether car prices will stabilise.
Source: CNN