In Michigan to mark his 100th day in office, Trump unveiled a tariff relief package allowing automakers to offset duties on imported parts.
Companies assembling vehicles in the US can claim credits worth up to 3.75% of the vehicle’s retail value through April 2026, declining to 2.5% by April 2027.
The plan aims to support firms during a two-year supply chain transition.
Trump’s move followed industry warnings that his 25% import tariffs on auto parts—set to take full effect May 3—would inflate consumer prices, disrupt production, and cost jobs.
In response, companies like GM, Ford, and Stellantis welcomed the softened measures, calling them a step toward stability.
Commerce Secretary Howard Lutnick revealed a pending trade agreement with an undisclosed foreign country, pending local parliamentary approval. Trump hinted at progress with India, stating, “India is coming along great.”
Despite easing steps, Canadian Chamber of Commerce President Candace Laing said only a full end to tariffs would restore business confidence. “Ongoing ups and downs perpetuate uncertainty,” she noted.
The announcements lifted investor sentiment, with the S&P 500 posting a sixth straight gain.
However, General Motors pulled its annual forecast and delayed its earnings call, citing tariff-related uncertainty.
Trump’s administration has pledged to negotiate 90 trade deals in 90 days as it seeks to realign global trade in favor of U.S. production. Industry leaders urge continued collaboration to protect supply chains and competitiveness.