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President Donald Trump is set to sign an executive order on Tuesday aimed at softening the impact of his administration’s automotive tariffs, Reuters reported, citing the White House. According to White House Press Secretary Karoline Leavitt, the order will offer targetted relief to U.S. automakers and parts manufacturers, alleviating some of the duties imposed on foreign components used in cars assembled domestically. It also seeks to prevent companies from being charged double tariffs — both on finished vehicles and raw materials like steel and aluminium used to make them.
“The President will sign the executive order on auto tariffs later today, and we will release it, as we always do,” Leavitt said during a briefing with Treasury Secretary Scott Bessent, according to Reuters.
The move comes as Trump travels to Michigan to mark his first 100 days in office. The state, home to the Detroit Three automakers and more than 1,000 suppliers, has been a focal point for the administration’s trade and manufacturing policies.
The Wall Street Journal first reported the upcoming changes, and administration officials have since confirmed that companies paying car tariffs would be reimbursed for additional levies already paid on components such as aluminium and steel.
“This deal is a major victory for the president’s trade policy by rewarding companies who manufacture domestically while providing runway to manufacturers who have expressed their commitment to invest in America and expand their domestic manufacturing,” Reuters quoted Commerce Secretary Howard Lutnick as saying.
Last week, a coalition of U.S. auto industry groups urged Trump to reconsider a proposed 25% tariff on imported auto parts, warning that such a measure would increase vehicle prices and impact sales. Trump had initially said he planned to impose the new duties by May 3.
