Trump extends automotive tariff relief and introduces new levies

The White House has extended tariff relief programs for major automakers from two to five years, addressing industry concerns about cumulative tariffs on automobile imports. This decision follows Trump's executive order preventing tariffs from stacking, which would have significantly increased costs for North American manufacturers.

Ford CEO Jim Farley had emphasized the need for tariff simplification, noting his company faces approximately $2 billion in annual tariff costs despite being the largest U.S. vehicle manufacturer. The administration has also announced new tariffs: 25% on heavy truck imports effective November 1, and 10% on buses, with preferential treatment for Mexico and Canada under USMCA.

Additionally, the government is developing an import adjustment program for engine manufacturers to incentivize domestic production. These measures reflect the administration's commitment to supporting U.S. manufacturing, protecting American jobs, and maintaining competitiveness in the automotive sector through strategic trade policy adjustments.