Trump Signs Executive Order to Ease Tariffs on Auto Industry

April 30 (UPI) -- On Tuesday, President Donald Trump issued two executive orders aimed at reducing his tariffs on car and automotive parts imports, signaling yet another significant shift in his trade policies due to worries raised by the domestic auto sector.

The executive orders Alter the 25% duties implemented earlier this month on car imports by eliminating extra tariffs that were put in place under President Trump for imported aluminum and steel. These new terms will decrease the 25% duty scheduled to take effect this coming weekend on components used in manufacturing domestically produced vehicles, as long as these autos include a minimum of 50% American-made components or those covered by the U.S.-Mexico-Canada Agreement.

A week prior, a group comprising both American and international automotive manufacturers—ranging from General Motors to Hyundai—sent a letter to the White House expressing concerns about potential tariffs on vehicle components. They warned these duties could trigger a chain reaction resulting in escalated pricing, reduced sales at dealerships, heightened expenses for maintaining and fixing cars, and ultimately lead to job cuts.

The coalition stated in the letter that 'most auto suppliers are not prepared for a sudden disruption caused by tariffs,' Detroit Free Press Numerous entities are already experiencing difficulties and will encounter production halts, job cuts, and insolvency.

"Only one supplier failing can result in shutting down an automaker's production line," it further stated.

Recent analysis According to data from the Center for Automotive Research, implementing uniform 25% tariffs as proposed by President Trump would lead to an additional cost burden of $107.7 billion across all U.S. automotive manufacturers.

Trump has argued that the tariffs will force automakers to pursue domestic production of vehicles, either by increasing the manufacturing of parts stateside and to encourage international automakers to build factories in the United States.

During a rally In Warren, Mich., on Tuesday, Trump stated that he "proudly enacted" a 25% tariff on all imported cars, adding that "this will generate additional employment opportunities within this state and across the nation."

He referred to the reduction of tariffs as "assistance" to expedite the relocation of their factories to the United States "at the earliest opportunity."

They've been granted some leniency," he explained. "Their components originate globally. That’s not what I desire. I prefer local production for these parts. However, I have allowed them additional time.

Anticipating accusations of flip-flopping, Trump stated, "This is what we call a bit of adaptability."

He mentioned that they grant some additional time before slaughtering them if they don't.