Trump eyes tariff relief for U.S.-built cars and parts
Trump's tariff relief plan could boost U.S. auto assembly
Trump eyes tariff relief for U.S.-built cars and parts
Trump weighs tariff cuts for U.S.-assembled cars, extending a 3.75% import compensator for five years to favor local production by Ford, Toyota, GM and others.
2025-10-05T14:01:19+03:00
2025-10-05T14:01:19+03:00
2025-10-05T14:01:19+03:00
U.S. President Donald Trump is weighing a sizable reduction in tariffs for companies that build cars inside the country. Reuters, citing Republican Senator Bernie Moreno, reports that the relief could effectively erase much of the cost linked to importing auto parts.Moreno, a member of the Senate Commerce Committee and a former auto dealer, said the measures are aimed at supporting manufacturers that complete final assembly in the United States. Among those likely to benefit are Ford, Toyota, Honda, Tesla, and General Motors. He conveyed that the message to automakers worldwide is straightforward: assemble vehicles in the U.S. and the policy will work in their favor. The thrust is clear—put the finishing work on U.S. soil, and the economics improve.According to sources, the Commerce Department has proposed extending the preferential “import compensator” for five years and keeping it at 3.75% of the recommended retail price for vehicles assembled in the U.S. Officials are also weighing whether to apply the same approach to engines produced domestically, which would further tilt incentives toward U.S.-based powertrain facilities.If adopted, the plan would sharpen the financial case for moving vehicle and component production to the United States, aligning with Trump’s core policy line of creating jobs at home. For the big-name brands mentioned, the calculation becomes simpler: keep assembly local to lower exposure to import-related costs.In May 2025, the Trump administration imposed 25% tariffs on imports of cars and auto parts totaling more than $460 billion a year, later striking separate agreements to reduce tariffs with Japan, the United Kingdom, and the European Union. In August, Washington also increased duties on steel and aluminum—including auto components—covering $240 billion in annual imports.The White House stressed that the president and his team remain committed to a comprehensive strategy to bolster domestic production of vehicles and parts, while noting that discussions are preliminary until an official order is signed.
tariff relief, U.S.-assembled cars, auto parts tariffs, import compensator 3.75%, Trump administration, Ford, Toyota, GM, domestic production, engines, automotive market
2025
Michael Powers
news
Trump's tariff relief plan could boost U.S. auto assembly
Trump weighs tariff cuts for U.S.-assembled cars, extending a 3.75% import compensator for five years to favor local production by Ford, Toyota, GM and others.
Michael Powers, Editor
U.S. President Donald Trump is weighing a sizable reduction in tariffs for companies that build cars inside the country. Reuters, citing Republican Senator Bernie Moreno, reports that the relief could effectively erase much of the cost linked to importing auto parts.
Moreno, a member of the Senate Commerce Committee and a former auto dealer, said the measures are aimed at supporting manufacturers that complete final assembly in the United States. Among those likely to benefit are Ford, Toyota, Honda, Tesla, and General Motors. He conveyed that the message to automakers worldwide is straightforward: assemble vehicles in the U.S. and the policy will work in their favor. The thrust is clear—put the finishing work on U.S. soil, and the economics improve.
According to sources, the Commerce Department has proposed extending the preferential “import compensator” for five years and keeping it at 3.75% of the recommended retail price for vehicles assembled in the U.S. Officials are also weighing whether to apply the same approach to engines produced domestically, which would further tilt incentives toward U.S.-based powertrain facilities.
If adopted, the plan would sharpen the financial case for moving vehicle and component production to the United States, aligning with Trump’s core policy line of creating jobs at home. For the big-name brands mentioned, the calculation becomes simpler: keep assembly local to lower exposure to import-related costs.
In May 2025, the Trump administration imposed 25% tariffs on imports of cars and auto parts totaling more than $460 billion a year, later striking separate agreements to reduce tariffs with Japan, the United Kingdom, and the European Union. In August, Washington also increased duties on steel and aluminum—including auto components—covering $240 billion in annual imports.
The White House stressed that the president and his team remain committed to a comprehensive strategy to bolster domestic production of vehicles and parts, while noting that discussions are preliminary until an official order is signed.
