President Donald Trump is considering exemptions for automakers from some tariffs announced by his administration, according to a White House confirmation. The move follows a Financial Times report that Trump plans to exempt auto parts from tariffs on imports from China.
The exemption would be separate from 25% tariffs on imported vehicles and 25% tariffs on imported auto parts scheduled to take effect May 3. Shares of automakers and suppliers rose marginally in after-hours trading following the news.
Industry groups, including franchised dealers and major automakers, have been lobbying Trump for relief on tariffs that have stacked up on the automotive industry. The groups argue that the upcoming tariffs could jeopardize US automotive production and would put additional pressure on struggling auto suppliers.
In a letter to Trump officials, the industry groups welcomed any exemptions or “de-stacking” of rates, citing concerns over compounding costs. The groups noted that many auto suppliers are already in distress and couldn’t afford the increased costs, leading to broader industry problems.
Source: https://www.cnbc.com/2025/04/23/trump-considering-exemption-for-automakers-on-some-tariffs-white-house-says.html