Trump administration eases tariffs for U.S. automakers

The Trump administration said on Tuesday that it will ease tariff pressure on automakers with reimbursements for taxes on foreign auto parts.Why it matters: Senior administration officials say the relief came after conversations with domestic auto manufacturers, many of which have warned about the economic damage from the previously imposed 25% tariff rate.Driving the news: President Trump is expected to sign an executive order later on Tuesday that would reimburse automakers for as much as 15% of the tariffs paid on imported foreign parts for cars finished in the U.S., effective on Saturday. That would move down to 10% next year. Auto tariffs will not be stacked on top of other levies imposed by the administration — such as those on steel or aluminum. The exception is tariffs on China. The Wall Street Journal first reported the administration's concessions on Monday night. What they're saying: "The key was that the automakers said that it will take them time to ramp up and produce their full supply chains domestically and that seemed like a very practical point of view. In conversations with them, we discussed how much would they hire, how much would they build, and what does America get in exchange for giving you this ramp time?" Commerce Secretary Howard Lutnick said.Domestic and foreign automakers "made it crystal clear" there would be a "dramatic increase in production — both extension of production lines, new factories coming in. That would be the payoff to America if the President would give them this latitude for the next two years."Go deeper: The surprising winners and losers from Trump's auto tariffsEditor's note: This story has been updated with comments by Sec. Lutnick.

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