Business & Economy

Trump eases auto tariffs

by Sylvan Lane 04/29/25 06:35 PM ET

President Donald Trump arrives to speak to members of the Michigan National Guard at Selfridge Air National Guard Base, Tuesday, April 29, 2025, in Harrison Township, Mich. (AP Photo/Alex Brandon)

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Business & Economy

The Big Story

Trump signs orders to scale back auto tariffs

President Trump signed executive orders Tuesday scaling back his 25 percent tariffs on imported automobiles and auto parts that are scheduled to go into effect May 3.

The Trump administration will spare foreign auto parts from facing a double hit from the president’s auto tariffs and his previously imposed import taxes on foreign metals, instead charging the highest available rate per product.

The administration will also allow automakers to apply for 15 percent price offsets in the first year of the tariffs and a 10 percent offset in the second year in a bid to get companies to increase domestic production of automobiles.

The cost reductions for carmakers — which the administration is calling offsets and distinguishing from rebates — will be phased out in the third year, by which time officials expect auto supply chains to be sufficiently reshored.

After the end of the second year, the 25 percent import tax on auto parts will be levied in full.

Read the full report at TheHill.com.

Welcome to The Hill’s Business & Economy newsletter, I’m Sylvan Lane — covering the intersection of Wall Street and Pennsylvania Avenue.

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Essential Reads

Key business and economic news with implications this week and beyond:

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Tax Watch

Democratic negotiators say Trump has targeted at least $430 billion in funding

Top Democratic funding negotiators in the House and Senate on Tuesday published a tracker they say is aimed at documenting federal funding blocked under President Trump, while accusing his administration of targeting at least $430 billion in funds.

Sen. Patty Murray (Wash.) and Rep. Rosa DeLauro (Conn.), top Democrats on the Senate and House appropriations committees, released the tracker early Tuesday in an effort they say is intended to “shine a light on President Trump’s vast, illegal funding freeze and how it is hurting people in every zip code in America.”

The tracker comes as Republicans in both chambers have been pushing for legislation to codify cuts pursued by Trump’s Department of Government Efficiency.

Those cuts could play a critical role in giving Republicans more budgetary room to cut taxes in their upcoming reconciliation bill.

— Aris Folley

The Ticker

Upcoming news themes and events we’re watching:

The Commerce Department releases the first estimate of first quarter gross domestic product growth at 8:30 a.m. Wednesday

Tomorrow’s news today

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In Other News

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Good to Know

Business and economic news we’ve flagged from other outlets:

Retailers Fear Toy Shortages at Christmas as Tariffs Freeze Supply Chain (NYT)
Starbucks stock falls as sales disappoint (CNBC)
Billionaire investor Ray Dalio says it’s ‘too late’ to escape damage from Trump’s tariffs (CNN)

What Others are Reading

Top stories on The Hill right now:

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What People Think

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Business & Economy

Business & Economy

Trump signs orders to scale back auto tariffs

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