Automakers Expected to Get Relief as Tariffs Reportedly Set to Be Softened

Automakers are poised to get a breather from recent pressure as the Trump administration is set to make changes to how tariffs will impact the industry, The Wall Street Journal reported late Monday.

Car manufacturers won’t have to pay additional tariffs like the 25% tax imposed on aluminum and steel imports if they are already paying those placed on imported vehicles, the Journal reported.

The report said that the Trump administration could announce the latest changes to the shifting trade policies as early as Tuesday, ahead of the President’s scheduled rally in Michigan to mark his first 100 days in office. The auto tariffs could have an outsized impact on Michigan, the home of “Big Three” automakers General Motors (GM) and Ford (F).

The change likely would be retroactive, allowing automakers to be reimbursed for tariffs they have already paid, the Journal said. The separate tariff on individual auto parts also would be altered to allow car makers to be reimbursed for part of the cost of a car, per the report. Experts have said prices of both used and new cars could rise by thousands of dollars under the tariffs, and also make car insurance more expensive.

Likely due to the report, General Motors on Tuesday postponed its first-quarter earnings call and delayed updating its full-year guidance by two days.

GM shares were down 1.5% in premarket trading, while shares of other U.S. automakers like Ford, Stellantis (STLA), Tesla (TSLA), and Rivian (RIVN) were little changed.