Trump Eases Auto Tariffs Amid Supply Chain Risk Warning

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Trump administration softens auto tariff impact by cutting duties on foreign parts used in U.S.-made vehicles and eliminating tariff "stacking" on imports.

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"This deal rewards companies who manufacture domestically," said Commerce Secretary Howard Lutnick, framing the move as a victory for Trump's trade policy.

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Auto industry groups had warned 25% tariffs on imported parts would create a "domino effect" of higher prices, lower sales, and costlier vehicle repairs.

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Suppliers faced potential "production stoppages, layoffs and bankruptcy" under original tariff plan, with one failure potentially shutting down entire production lines.

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GM CEO Mary Barra welcomed the changes: "We're grateful to President Trump for his support of the U.S. automotive industry and the millions of Americans who depend on us."

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The timing aligns with Trump's Michigan rally marking his first 100 days, in a state housing Ford, GM, Stellantis, and over 1,000 major auto suppliers.

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While offering relief to automakers, core auto tariffs remain in place for imported vehicles, maintaining pressure on foreign manufacturers to increase U.S. production.

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