Faced with manufacturers' fears, Donald Trump is preparing to ease customs duties on automobiles

US President Donald Trump is preparing to sign an executive order aimed at mitigating the impact of his tariffs on the auto industry , the White House announced. Administration officials said the upcoming measures would ease some tariffs on foreign parts used in the manufacture of vehicles in the United States, while importers would not have to pay the same type of levy twice—on both cars and materials.

"The president will sign the auto tariff order later today, and we will issue it, as we always do," White House spokeswoman Karoline Leavitt said during a meeting with Treasury Secretary Scott Bessent about the Trump administration's economic policy agenda.

The administration has not yet formally announced any measures to ease tariffs, but officials confirmed reports in the Wall Street Journal that companies paying tariffs on cars would no longer be subject to other levies, such as those on aluminum and steel. Any tariffs already paid would also be refunded.

"This agreement is a major victory for the president's trade policy, rewarding companies that produce domestically, while paving the way for manufacturers who have expressed their commitment to investing in America and expanding their production here," said U.S. Commerce Secretary Howard Lutnick in a statement released late Monday, without providing further details.

Donald Trump is traveling to Michigan on Tuesday to commemorate his first 100 days in office since returning to the White House on January 20, during which the Republican president has upended the global economic order . Easing the impact of the auto tariffs is the latest move by his administration to show some flexibility on the levies, which have roiled financial markets, created uncertainty for businesses, and sparked fears of a sharp economic slowdown.

Automakers said earlier Monday they expected Trump to offer relief from auto tariffs before his trip to Michigan, home to the Detroit Three and more than 1,000 major suppliers. General Motors CEO Mary Barra and Ford CEO Jim Farley welcomed the upcoming changes.

"We believe the President's leadership helps level the playing field for companies like GM and allows us to invest even more in the American economy," said Mary Barra.

Jim Farley, for his part, said the upcoming changes would help "mitigate the impact of tariffs on automakers, suppliers, and consumers." The uncertainty triggered in the auto industry by the tariffs, however, was further evident on Tuesday when GM withdrew its annual forecast, despite reporting strong quarterly sales and profits . Unusually, the automaker also chose to postpone a planned conference call with analysts until later in the week, once details of the upcoming changes were known.

A coalition of US auto industry groups urged Donald Trump last week not to impose 25% tariffs on imported parts, warning that they would reduce vehicle sales and raise prices. The US president had previously said he planned to impose 25% tariffs on auto parts no later than May 3.

"Tariffs on auto parts will disrupt the global automotive supply chain and trigger a domino effect that will drive up car prices for consumers, lower sales at dealerships, and make vehicle maintenance and repair both more expensive and less predictable," the manufacturers said in a letter.

This letter from representatives of GM, Toyota Motor, Volkswagen, Hyundai, and others was sent to U.S. Trade Representative Jamieson Greer, Scott Bessent, and Howard Lutnick. " Most automotive suppliers are not equipped to handle an abrupt disruption due to tariffs. Many are already struggling and will face production shutdowns, layoffs, and bankruptcies," the coalition added in its letter, judging that "it only takes the failure of a single supplier to bring a manufacturer's production line to a standstill."