Trump Grants Temporary Relief to Auto Industry Before Tariff Hike Trump announced the move during a visit to Michigan, the heart of the American auto industry, in a high-stakes effort to reassure manufacturers and voters just days before marking his 100th day in office

In a move aimed at softening the blow of his controversial auto tariffs, President Donald Trump on Tuesday signed two executive orders offering limited relief to automakers, even as his administration grapples with mounting criticism over the economic fallout of his trade policies.

The orders provide temporary exemptions on levies for imported auto parts used in US-assembled vehicles, allowing manufacturers to offset the impact of the 25 per cent tariffs set to take effect. The policy shift grants automakers until April 2026 to offset tariffs up to 3.75 per cent of the vehicle's retail price, and 2.5 per cent of domestic production through April 2027.

Trump announced the move during a visit to Michigan, the heart of the American auto industry, in a high-stakes effort to reassure manufacturers and voters just days before marking his 100th day in office. "We just wanted to help them... if they can't get parts, we didn't want to penalize them," Trump said before leaving Washington.

The announcement follows weeks of intense lobbying from automakers and suppliers who warned that the tariffs threatened to disrupt North America's tightly integrated production networks. The White House confirmed that the relief will not affect the broader 25 per cent tariffs already imposed on the 8 million vehicles imported into the U.S. annually.

Industry response was cautiously optimistic. Autos Drive America, a coalition representing foreign automakers such as Toyota, Volkswagen, and Hyundai, said the orders offered "some relief" but warned that "more must be done in order to turbocharge the U.S. auto industry."

However, critics say the relief is too little, too late. Candace Laing, president of the Canadian Chamber of Commerce, called the measures insufficient, saying, "Only an end to tariffs provides real relief. Ongoing ups and downs perpetuate uncertainty, and uncertainty drives away business."

The uncertainty was underscored when General Motors abruptly withdrew its annual forecast and delayed its quarterly analyst call pending further details. Meanwhile, Commerce Secretary Howard Lutnick revealed that a deal with one foreign government had been reached to ease future reciprocal tariffs, though he declined to name the country.