Facing pressure, Trump scales back tariffs for US automakers

Donald Trump signed two executive orders today that walked back parts of tariffs he previously imposed on US automakers ahead of a rally in Michigan to mark his first 100 days in office.

The Wall Street Journal first reported today in an exclusive that Trump was “expected to soften the impact of his automotive tariffs, preventing duties on foreign-made cars from stacking on top of other tariffs and easing some levies on car parts.”

Trump signed an executive order making sure the 25% tariffs on vehicles and certain auto parts won’t stack on top of existing aluminum, steel, or Canada and Mexico tariffs. He also gave automakers a credit to help blunt the impact of the 25% duties on imported parts that go into US-built cars.

Trump’s backpedal comes after weeks of meeting with automaker executives, and a week after a coalition that included GM, Toyota, Volkswagen, and Hyundai sent a letter urging him to drop tariffs on foreign auto parts due to land in May.

Advertisement – scroll for more content

American Automotive Policy Council (AAPC) president Matt Blunt today said in response to the executive orders, “American Automakers Ford, GM, and Stellantis appreciate the administration’s clarification that tariffs will not be layered on top of the existing Section 232 tariffs on autos and auto parts. Applying multiple tariffs to the same product or part was a significant concern for American automakers, and we are glad to see this addressed. We will review the details of the executive order closely to assess how effectively it will mitigate the impact of tariffs on American automakers, our domestic supply chains and ultimately American consumers.” The AAPC represents Ford, GM, and Stellantis. 

Electrek’s Take

The 25% auto tariffs implemented under Section 232 of the Trade Expansion Act aren’t going anywhere, and most economists say that tariffs will raise car prices and slow auto sales. This White House Fact Sheet is titled, “President Donald J. Trump Incentivizes Domestic Automobile Production.” Where’s the incentive? US automakers are just getting hit with the stick once instead of twice, and they’re thanking Trump for it.

The carrot that worked as an incentive was Biden’s Inflation Reduction Act, along with the stability that came with it. All this whiplash is terrible for the US and global economy.

Read more: Killing IRA EV tax credits will ruin US EV and battery industries – Princeton study

Now is a great time to begin your solar journey so your system is installed in time for those longer sunny days. If you want to make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20 to 30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.

Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here. –trusted affiliate partner