P&A Providers & Administrators
MenuMENU
SearchSEARCH

U.S. Auto Industry Gets Tariff Break

White House eliminates one tariff and reduces another’s impact while keeping 25% duty on imported cars.

April 29, 2025
U.S. Auto Industry Gets Tariff Break

Industry forecasters have said at least part of trade tariff cost would be passed on to consumers. 

Credit:

Pexels/Jakub Zerdzicki

2 min to read


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.

Ad Loading...

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.

Ad Loading...

Originally posted on F&I and Showroom

More Industry

Orange electric vehicle charging station.
Industry•by Lauren Lawrence•October 20, 2026

Charger Network Growth Slows

Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.

Read More →
Fan of $100 bills atop a white envelope
Industry•by Hannah Mitchell•October 13, 2026

Lenders, Consumers Take on More Auto Loan Risk

September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.

Read More →
Red type R Honda civic parked on road.
Industry•by Lauren Lawrence•October 13, 2026

Next-Gen Hybrids in Sight

Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.

Read More →
Ad Loading...
Dodge ram emblem on orange vehicle exterior
Industry•by Hannah Mitchell•October 6, 2026

Gem State Stores Change Hands

A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.

Read More →
Graphic of model car driving on fake road.
Industry•by Lauren Lawrence•October 6, 2026

Charging In Motion

Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.

Read More →
front grill of a Ford truck with blue Ford emblem
Industry•by Lauren Lawrence•September 30, 2026

Twin Cities Stores Sell

Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.

Read More →
Ad Loading...
Diesel engine on a production line in a factory
Industry•by Hannah Mitchell•September 29, 2026

U.S. Auto Sales Still Below Prepandemic Levels

Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.

Read More →
Front of red tesla car.
Industry•by Lauren Lawrence•September 22, 2026

The Powertrain Shift

Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.

Read More →
White BMW SUV driving on road.
Industry•by Hannah Mitchell•September 15, 2026

Achromatic Autos

The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.

Read More →
Ad Loading...
Line of eclipse SUVs in parking lot.
Industry•by Lauren Lawrence•September 15, 2026

Used-Vehicle Affordability Worsens

Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.

Read More →