US President Donald Trump signed an executive order Tuesday aimed to provide some relief to the country’s beleaguered auto industry.
The measure exempts American automakers from stacked duties — so car parts would not also face steel and aluminum tariffs — and offers rebates to soften the cost of imported parts, although these will be phased out.
The changes come after warnings that Trump’s tariffs could decimate the industry: One report suggested that Ford, GM, and Stellantis could face $42 billion in additional costs due to some of Trump’s tariffs; GM, Volvo, and Porsche have all pulled or lowered their 2025 profit forecasts.
Despite the reprieve, the “key tariff headwinds remain,” Barclays analysts noted: Trump’s auto parts duty is set to take effect Saturday.