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Autoworkers at Nissan’s Smyrna Vehicle Assembly Plant in Tennessee represent a significant workforce, contributing to the production of various vehicles, including the Leaf electric vehicle and the Rogue crossover.
The White House announced on Tuesday new measures intended to alleviate the burdens of automotive tariffs, as the automotive sector navigates increased regulatory challenges and costs associated with these tariffs.
While the existing 25% tariffs on imported vehicles will remain in place, the latest regulations aim to prevent additional tariffs, such as another 25% on steel and aluminum, from compounding these financial pressures, according to a White House official speaking to NBC News.
Despite these adjustments, the implementation of further 25% tariffs on auto parts is still expected to begin on May 3, although the administration has introduced provisions for potential reimbursements. These reimbursements could equal up to 3.75% of the value of a U.S.-made vehicle in the first year, reducing to 2.5% in the second year and then tapering off entirely, as reported by The Wall Street Journal.
White House press secretary Karoline Leavitt confirmed that President Donald Trump plans to issue an executive order concerning automotive tariffs later in the day, yet she withheld detailed information about specific adjustments.
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This anticipated response from the administration follows advocacy from automakers and automotive policy organizations, who have been pressing for relief from growing tariff pressures that the industry faces.
Last week, six top policy groups representing the U.S. automotive sector—including the Alliance for Automotive Innovation, which includes many major manufacturers—joined forces to petition against the upcoming tariffs on auto parts.
In a letter to administration officials, they noted, “President Trump has shown a willingness to reconsider the 25 percent tariffs on imported automotive parts, similar to the recent relief granted for consumer electronics and semiconductors. This would represent a positive evolution and much-needed support.” These groups—comprising franchised dealers, suppliers, and nearly all major automakers—expressed concern that the impending levies could threaten U.S. automotive production. They also highlighted that many auto suppliers are already in precarious positions and unable to absorb further cost increases, risking broader impacts on the industry.
As General Motors prepared to report its first-quarter results, CFO Paul Jacobson indicated that “the future impacts of tariffs could be substantial.”
In light of ongoing regulatory uncertainty and anticipated cost hikes, GM has withdrawn its 2025 guidance, which did not consider any tariffs, halted stock buybacks, and postponed its quarterly investor call by two days until Thursday.
Automakers expressed gratitude for the expected changes, even as they continue to confront considerable cost increases. “Ford welcomes and appreciates these decisions made by President Trump, which will assist in alleviating the impact of tariffs on manufacturers, suppliers, and customers,” stated Ford CEO Jim Farley in an email.
Stellantis Chair John Elkann echoed these sentiments, commenting, “Stellantis appreciates the measures for tariff relief established by President Trump. As we further evaluate the effects of these tariff policies on our North American operations, we look forward to continuing our collaboration with the U.S. Administration to fortify a competitive American automotive industry and boost exports.”
GM CEO Mary Barra also expressed her gratitude towards the administration, affirming that these changes help create a more level playing field for companies like GM, enabling increased investment in the U.S. economy.
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