Automobile staff at Nissan, Tennessee, Smyrna Vehicle Assembly Plant. The plant employs thousands of people and produces a variety of vehicles including the Leaf EV and the Rogue Crossover.
Michael Wayland / CNBC
The White House confirmed Tuesday the Trump administration’s plans to soften the impact of auto tariffs as the auto industry struggles to address regulatory uncertainty and additional costs.
White House officials told NBC News that a White House official told NBC News that 25% of imported vehicles will continue to enter the U.S. at this time, but the new measures will prevent other adjacent taxes, such as the 25% tariff on steel and aluminum, "stacking" from other taxes.
The official said the expected auto parts are also expected to take effect on May 3 with a 25% auto parts tariff, but has some reimbursement capacity.
Reimbursement of auto parts tariffs includes up to 3.75% of the value of a U.S.-made car, followed by 2.5% of the value of a second year, and then will be completely eliminated, according to the Wall Street Journal.
White House press secretary Karoline Leavitt told the media Tuesday morning that President Donald Trump will sign an executive order on automatic tariffs later that day, but she declined to disclose any specific changes.
The expected change is lobbying for automakers and auto policy groups to lobby for some relief from the Trump administration on tariffs that have piled up in the automotive industry.
Last week, six top policy groups representing the U.S. auto industry, including the Automotive Innovation Alliance, representing most major automakers, were non-characteristically lobbying the Trump administration against upcoming auto parts tariffs.
"President Trump said he was open to reconsider the administration's 25% tariff on imported auto parts, similar to the recently approved tariff relief for consumer electronics and semiconductors. It would be a positive development and welcome relief," the groups set in a letter to Trump officials.
These groups represent franchised dealers, suppliers and nearly all major automakers – saying the upcoming taxes could endanger U.S. auto production, noting that many auto suppliers have “had a hard time” in affording additional cost increases, leading to wider industry problems.
Before the company reports its first-quarter results, General Motors "The future impact of tariffs may be huge," Chief Financial Officer Paul Jacobson told reporters.
In response to regulatory uncertainty and increased expected costs, GM stopped its 2025 guidance, which did not take effect. suspended stock buybacks; and delayed its quarterly investor calls for two days until Thursday.
Automakers thanked the changes expected but still faced substantial growth.
"Ford welcomes President Trump's decisions and thanks President Trump for these decisions, which will help mitigate the impact of tariffs on automakers, suppliers and consumers," Ford CEO Jim Farley said in an emailed statement.
Stellantis Chairman John Elkann responded to these words: "Stellantis appreciates President Trump's decision on tariff remedies. Although we further evaluate the impact of tariff policies on North American action, we look forward to continuing to work with the U.S. government to enhance the competitive U.S. auto industry and stimulate exports."
General Motors CEO Mary Barra also thanked Trump, saying: “This is providing a competitive environment for companies like General Motors and allowing us to invest more in the U.S. economy.