Trump is giving automakers a break on tariffs
President Trump has decided to give automakers a break on some of his tariffs, the latest retreat from a get-tough policy he has said is aimed at bringing manufacturing jobs to America and driving up government revenues.
The formal announcement is expected on Tuesday ahead of a Michigan rally marking Trump’s 100 days in office. Trump’s on-again, off-again tariffs have sparked whipsaw moves in financial markets, and most polls show Americans are concerned about Trump’s handling of the economy.
The move will ensure that the different types of tariffs charged by the administration don’t stack up on imports of foreign cars. The Wall Street Journal first reported the shift on Monday. An administration official confirmed the changes, speaking on condition of anonymity.
Importers of foreign auto parts will be able to get some reimbursement from the government for tariffs for the next two years.
The break will both reward domestic manufacturers while “providing runway” to those needing time to invest in domestic plants, Commerce Secretary Howard Lutnick said in a statement provided by the administration.
“President Trump is building an important partnership with both the domestic automakers and our great American workers,” Lutnick said in the statement.
Trump’s 25% tariffs on steel and aluminum imports kicked in last month, hurting the auto industry. That was followed by a 25% tariff on imported cars. Later this week, imported car parts will also be hit with a 25% tariff. (The tariff rules are different for cars imported from Mexico and Canada under the United States-Mexico-Canada Agreement.)
Automakers have complained the tariffs are too high, though the United Auto Workers has praised the auto tariffs because they say they will bring more manufacturing jobs back to the United States.
The administration has also slapped 10% across-the-board tariffs on imports, but abruptly paused higher country-by-country rates for 90 days — except for Chinese goods.
Where things stand with Trump’s National Guard deployments
The Trump administration has deployed or threatened to deploy National Guard troops in more than half a dozen American cities that it says are crime ridden.
Kimmel and Colbert appear as guests on each other’s shows
On Tuesday night, in New York City, they united in a special talk show crossover of Jimmy Kimmel Live! on ABC and The Late Show with Stephen Colbert on CBS.
Taylor Swift popularized fighting for masters. Are more artists getting ownership?
Taylor Swift turned masters ownership from a behind-the-scenes conversation into a mainstream debate about artist autonomy. But how has that fight influenced other artists in the music industry?
Poll: Agreement that political violence may be necessary to right the country grows
On hot button issues, a majority say children should be vaccinated; controlling gun violence is more important than gun rights; and Epstein files should be released, in a new NPR/PBS News/Marist poll.
Federal agencies are rehiring workers and spending more after DOGE’s push to cut
Eight months after the Department of Government Efficiency effort to shrink the federal workforce began, some agencies are hiring workers back – and spending more money than before.
A GOP push to restrict voting by overseas U.S. citizens continues before 2026 midterms
Republican officials are pushing for more voting restrictions on U.S. citizens who were born abroad and have never lived in the country, after unsuccessfully challenging their ballots in 2024.