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

Penske Auto Group Deal a Record
The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.
Read More →
War Toll a Damper on Used Auto Prices
Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.
Read More →
Bridge the Maintenance Gap
With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.
Read More →
California Store Has New Owner
The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.
Read More →
BMW Plant Pursues Cleaner Energy
BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.
Read More →
Auto Affordability Inches Up
The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.
Read More →
Ohio Auto Group Under New Ownership
After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.
Read More →
RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →
Missed Maintenance Creates Opportunity
As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.
Read More →