On His 100th Day, President Trump Announces Tariff Adjustments for U.S. Auto Industry

Today, on his 100th day in office, President Donald Trump introduced changes to the tariff structure on automobiles and auto parts to "better address national security risks" while "supporting domestic manufacturing".

The updated policy modifies Proclamation 10908 by offering temporary reductions in duties on imported auto parts used in U.S.-assembled vehicles. Under the new system, manufacturers can apply for an import adjustment offset as follows:

• From April 3, 2025, to April 30, 2026, eligible manufacturers may receive an offset equal to 3.75% of the total MSRP value of automobiles assembled in the U.S.

• From May 1, 2026, to April 30, 2027, the offset drops to 2.5% of that value.

These adjustments reflect reduced duties on parts that make up 15% and 10% of a vehicle's MSRP, respectively. Only vehicles undergoing final assembly in the United States qualify for the offset.