Does Trump regret auto tariffs? He signs executive order for new agreement

United States.- The Trump administration is offering automakers that complete their vehicles in the country a 15% rebate this year , offsetting the cost of tariffs.

That rebate would be 10% in the second year, giving automakers time to shift parts production out of the country to the United States , a senior Commerce Department official said on a call with reporters to preview the executive order.

The discounts would be available to domestic and foreign companies with auto plants in the U.S.

Treasury Secretary Scott Bessent said Tuesday morning that the goal of the tariffs was to allow automakers to create more domestic manufacturing jobs.

President Trump has held meetings with domestic and foreign automakers and has pledged to bring auto production back to the United States.

"So we want to give automakers a way to do that, quickly, efficiently, and create as many jobs as possible," Bessent said.

The Commerce Department official said automakers told Trump the additional time would allow them to accelerate construction of new factories, after automakers warned it would take time to shift their supply chains.

The official said automakers would announce additional shifts for workers, new hires, and plans for new facilities over the next month.

Stellantis President John Elkann said in a statement that the company welcomes the President's tariff relief measures.

"As we continue to assess the impact of tariff policies on our North American operations, we look forward to continuing to work with the U.S. administration to strengthen a competitive U.S. auto industry and stimulate exports," he said.

General Motors CEO Mary Barra said the automaker is grateful for Trump's support for the industry, noting that the company looks forward to continuing discussions with the president and working with the administration.

"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 American economy," Barra said in a statement.

Jim Farley , president and CEO of Ford Motor, emphasized that his company is doing more than its peers to manufacture domestically.

"We will continue to work closely with the administration to support the president's vision of a healthy and growing auto industry in America.

"As the right policies are put in place, it will be important for major vehicle importers to match Ford's commitment to building in America. If all companies selling vehicles in the U.S. matched Ford's American-built ratio, approximately 4 million more vehicles would be assembled each year," Farley said.

The Wall Street Journal first reported details of the measures.

White House makes it official

In a statement, the White House officially announced President Donald Trump 's initiative to reimburse 15% of the total cost to automakers that produce their vehicles in the United States.

"To eliminate the threat of imported automobiles and auto parts, I believe it is necessary to modify the system imposed by Proclamation 10908 by reducing the duties on auto parts that represent 15 percent of the value of an automobile assembled in the United States for one year and the equivalent of 10 percent of that value for one additional year," he said.

This measure will be implemented as follows: For automobiles assembled in the U.S., automakers will be eligible to receive an import adjustment offset amount applicable to Section 232 duties on auto parts.

In addition, the automaker may apply for an import adjustment offset equal to 3.75% of the MSRP of all U.S.-assembled automobiles from April 3, 2025, through April 30, 2026.

You may also apply for an import adjustment offset amount equal to 2.5% of the MSRP of all U.S.-assembled automobiles from May 1, 2026, through April 30, 2027.

Finally, they clarified that the measure will apply only to cars whose final assembly takes place in the US.

JRL / AM