U.S. Auto Industry Gets Tariff Break
White House eliminates one tariff and reduces another’s impact while keeping 25% duty on imported cars.

Industry forecasters have said at least part of trade tariff cost would be passed on to consumers.
Pexels/Jakub Zerdzicki
After nearly two months of back-and-forth U.S. trade policy moves, the domestic auto industry got partial relief Tuesday, some of the tariffs in play being removed from the sector or reduced.
A 25% tariff on imported vehicles imposed early this month remains in place, but a separate 25% tariff on imported steel and aluminum was eliminated for the auto industry, and a tariff scheduled to take effect May 3 on imported auto parts was shrunk via reimbursements, per a White House executive order.
The White House said President Donald Trump signed the executive order Tuesday around tariffs affecting the sector, the same day he visited auto manufacturing hotbed Michigan for a rally marking the first 100 days of his second term.
Automakers have been urging Trump to grant them tariff relief, saying the duties will drive up vehicle prices and cut both their U.S. and overseas sales before any state-side auto manufacturing jobs would be created.
Industry forecasters have said at least part of trade tariff cost would be passed on to consumers. J.D. Power estimated mid-April that vehicle price hikes would settle at an average of 5%, or $2,300 per unit, by the fourth quarter. Cox Automotive analysts have foreseen price increases of 10% or more.
The tariff relief conceivably will curtail the impacts on U.S. automakers.
The auto parts tariff will come with reimbursements of up to the equivalent of 3.75% of a U.S.-made car’s value for a year for vehicles assembled before May 1, 2026, then a 2.5% equivalent reimbursement in the second year before being phased out, according to news reports.
Originally posted on F&I and Showroom
More Industry

Ownership Priorities are Shifting
A new survey shows that in the U.S. vehicle quality for generation Z is largely defined by advanced safety features, intuitive technology and premium sound systems.
Read More →
Pump Price Jump Calculated
ISeeCars.com examined fuel costs for different power trains, finding which ones have experienced the biggest hits since the war in Iran commenced.
Read More →
Black Book: Weekly Market Update
Wholesale values fell last week despite the spring season still being in the traditional full-gear mode, analysts said.
Read More →
Arkansas Auto Group Acquires First Indiana Rooftop
Performance Brokerage Services represented both the buyer and seller in the sale of Carver Toyota of Columbus by Carlock Automotive Group.
Read More →
Stellantis to Dive Into U.S. Lending
The multinational maker of Chrysler, Dodge, Jeep, Ram and multiple other brands received conditional approvals for a Utah-based industrial bank.
Read More →
New-Vehicle Prices Rise
With April sales down, higher prices on in-demand large vehicles helped inflate the overall ATP, though increases were under long-term averages, Cox Automotive reported.
Read More →
Black Book: Weekly Market Update
Last week in the wholesale automotive market proved to be a mixed bag, analysts reported.
Read More →
Black Book: Weekly Market Update
Conversion rates were flat last week at 63%, Black Book analysts calculated, as low-mileage and almost-near units outpaced the overall market.
Read More →
EU Auto Association Urges Action
Trade relations between the European Union and the U.S. are at risk, causing the European Automobile Manufacturers Association to push lawmakers to make a decision.
Read More →
Driving into the Super CFC Era
Understanding the risks and benefits of retail accounting and Super CFCs can help you better present options to your dealer partners.
Read More →