President Donald Trump is preparing to announce a series of adjustments to the recently imposed car tariffs, aimed at easing the financial burden on U.S. car manufacturers. The new measures, set to be revealed before his upcoming visit to Michigan, are expected to prevent overlapping duties and provide partial reimbursements to companies for imported car parts.
The tariffs, which took effect on April 3 for finished cars and will extend to car parts on May 3, had raised concerns throughout the automotive industry. In particular, the Detroit Three carmakers, along with more than 1,000 suppliers based in Michigan, were anxious about the impact on their operations.
Commerce Secretary Howard Lutnick praised the forthcoming changes, emphasizing the benefits for both domestic automakers and American workers. “This deal is a major victory for the President’s trade policy by rewarding companies who manufacture domestically while offering support to manufacturers committed to investing in the U.S.,” Lutnick said.
The expected changes include the introduction of partial reimbursements for carmakers, based on the value of their U.S.-produced vehicles. This policy will be applied retroactively, allowing manufacturers to recover some of the tariffs they have already paid. Additionally, the new rules will prevent double taxation on imported car parts, meaning carmakers will no longer face tariffs on steel and aluminum in addition to the new car duties.
General Motors CEO Mary Barra welcomed the expected relief, stating, “We believe the president’s leadership is helping level the playing field for companies like GM and allowing us to invest even more in the U.S. economy.”
The move is also significant for international car manufacturers, particularly those in the UK. The U.S. remains the second-largest export market for British-made cars, with around 100,000 vehicles worth £7.6 billion exported in 2024. However, a recent study by the U.S. International Trade Commission warned that the tariffs could reduce car imports by up to 75 percent, a blow to the UK’s automotive sector.
Some British carmakers, such as Jaguar Land Rover, have already begun to feel the impact, with the company halting shipments of UK-built vehicles to the U.S. for a month to manage the fallout from the new tariffs.
While the adjustments are expected to provide some relief for U.S. manufacturers, uncertainty remains for international exporters. Many are watching closely for further developments, as the final shape of the U.S. tariff policy continues to evolve.
