Trump considering significant tariff relief for US vehicle production

U.S. President Donald Trump is considering significant tariff relief for U.S. auto production that could effectively eliminate much of the costs major car companies are paying, Republican U.S. Sen. Bernie Moreno and auto officials told Reuters Friday.

"The signal to the car companies around the world is look you have final assembly in the US: we're going to reward you," Moreno said in an interview. "For Ford, for Toyota, for Honda, for Tesla, for GM, those are the almost in order the top five domestic content vehicle producers — they'll be immune to tariffs."

In June, the Commerce Department said it planned an import adjustment offset equal to 3.75% of the suggested retail price for eligible U.S. assembled vehicles through April 2026 and then a second year at 2.5% to address tariffs from imported automobile parts.

Trump is considering keeping the offset at 3.75% and extending to five years, and expanding the offset to U.S. engine production, Moreno and auto officials said.

Moreno said he thinks Trump will make a final decision soon. "It's obviously up to the president, but absolutely thrilled that we're creating now an incentive system that really separates these importers only versus the ones that are manufacturing in America."

Asked for comment on the proposal, a White House official said Trump and the administration "are committed to a nuanced and multi-faceted approach to securing domestic auto and auto parts production. Until any official action is signed by the president, however, any discussion about administration policymaking is speculative."

Source: Reuters