Trump adjusts stance on auto tariffs to lessen impact on industry, says Commerce Secretary.

WASHINGTON, April 29 — The Trump administration plans to ease the impact of automotive tariffs on Tuesday by reducing some duties on foreign parts used in domestically manufactured vehicles and preventing multiple layers of tariffs on cars made abroad, officials said.

"President Trump is forging a strong partnership with domestic automakers and our great American workers," Commerce Secretary Howard Lutnick said in a statement released by the White House.

"This agreement marks a major victory for the President’s trade strategy, rewarding companies that manufacture in the US while giving additional support to those committed to expanding their American operations," he added.

According to The Wall Street Journal, which first reported the move, automakers subject to tariffs will not face additional charges on items like steel and aluminium, and those who already paid such tariffs will receive reimbursements.

A White House official confirmed the report, noting that the decision would be made official on Tuesday.

Trump is scheduled to travel to Michigan that day to commemorate his first 100 days in office—a period during which the Republican president has sought to reshape the global economic landscape.

The decision to soften the auto tariffs marks the administration’s latest effort to demonstrate flexibility on trade measures that have unsettled financial markets, fueled business uncertainty, and raised concerns over a potential economic slowdown.

Automakers earlier on Monday expressed hope that Trump would announce tariff relief during his Michigan visit. The state is home to the Detroit Three automakers and over 1,000 major auto suppliers.

Last week, a coalition of US auto industry groups urged Trump to avoid imposing a 25 per cent tariff on imported auto parts, warning it would drive up car prices, lower sales at dealerships, and make vehicle repairs more costly and unpredictable.

Trump had previously signaled plans to impose the new tariffs no later than May 3.

"Tariffs on auto parts would disrupt the global automotive supply chain, leading to higher prices for consumers, reduced sales at dealerships, and more expensive, less reliable vehicle servicing and repairs," the industry groups wrote in a letter.

The letter, addressed to US Trade Representative Jamieson Greer, Treasury Secretary Scott Bessent, and Commerce Secretary Lutnick, included input from automakers such as General Motors, Toyota Motor, Volkswagen, and Hyundai.

"Most auto suppliers are not financially equipped to handle a sudden, tariff-induced disruption," the letter warned. "Many are already struggling and could face production halts, layoffs, or bankruptcy. The failure of even a single supplier could force an automaker’s production line to shut down." — Reuters