President Donald Trump plans to sign an executive order to ease his 25% tariffs on autos and parts, aiming to support domestic manufacturers. The White House announced the move after concerns that these tariffs could harm U.S. factories. Automakers and analysts have warned that such tariffs could increase prices, reduce sales, and weaken U.S. competitiveness globally. The new order will provide a 15% rebate this year for automakers completing vehicles domestically, decreasing to 10% the following year. This aims to encourage relocation of production to the U.S. Industry leaders like Stellantis, General Motors, and Ford expressed gratitude for the relief measures. However, analysts caution that the auto industry requires stability and significant time for supply chain adjustments. The changes are retroactive and intended to prevent multiple tariffs on imported parts used in domestic auto production.
— new from AP News
