Trump eases tariffs on auto components for vehicles assembled in the US.

The U.S. government will partially reimburse domestic automakers for costs related to a 25% tariff on auto parts starting May 3, as per an executive order signed by President Trump. Automakers can offset up to 3.75% of their tariff costs for one year, retroactive to April 3, with the rate dropping to 2.5% thereafter. The order does not change existing tariffs on steel, aluminum, or vehicles, and a process for automakers to document their costs will be established within 30 days. Industry experts warn that these tariffs could significantly increase costs for domestic manufacturers.