Does Trump regret auto tariffs? He signs executive order today for a new agreement.
United States.- President Donald Trump will sign an executive order Tuesday to relax tariffs on cars and auto parts , the White House announced, a significant shift since import taxes threatened to hurt domestic manufacturers.
Trump had announced 25% tariffs on cars and parts. Manufacturers and analysts have indicated that the measure could raise prices, reduce sales, and make US production less competitive globally. White House press secretary Karoline Leavitt stated at a press conference Tuesday that Trump would sign the order later that day, but declined to provide details about it.
The White House announcementTreasury Secretary Scott Bessent , who joined Leavitt at the White House press conference, said the goal was to allow automakers to create more domestic manufacturing jobs.
"President Trump has met with both domestic and foreign automakers and is committed to bringing auto production back to the United States . So we want to give automakers a path to do that quickly, efficiently, and while creating as many jobs as possible," Bessent said.
The Wall Street Journal reported that the order involves changes to how import taxes would be applied to prevent multiple tariffs on foreign-made vehicles and reduce tariffs on imported parts used to manufacture cars domestically. The changes would also be retroactive.
The tariffs imposed by Trump were seen by some as an existential threat to the auto sector. Arthur Laffer, to whom Trump awarded the Presidential Medal of Freedom during his first term, said in a private analysis that the unmodified tariffs could add $4,711 to the cost of a vehicle.
The changes come as Trump marks 100 days back in the White House by traveling to Michigan, a state defined by auto manufacturing. Trump won the state in last year's election by promising to increase factory jobs.
Still, it remains unclear what impact Trump's tariffs will have on the U.S. economy and auto sales. Most economists say the tariffs, which could affect most imports, would raise prices and slow economic growth, possibly hurting auto sales despite the relief the administration aims to provide with its previous policies.
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