Trump eases auto tariffs burden as Lutnick touts foreign trade deal

Commerce chief declines to name country, saying PM must give approval

Newly manufactured cars of Subaru awaiting export are parked at a port in Yokohama, south of Tokyo in March. U.S. President Donald Trump has agreed to provide carmakers with credits for up to 15% of the value of vehicles assembled domestically. © Reuters

April 30, 2025 06:15 JST

WASHINGTON/DETROIT (Reuters) -- U.S. President Donald Trump signed an order to soften the blow of his auto tariffs on Tuesday with a mix of credits and relief from other levies on materials, and his trade team touted its first deal with a foreign trading partner, developments that eased investor worries about Trump's erratic trade policies.

The change comes the day Trump was headed to Michigan, cradle of the U.S. auto industry and just days before a fresh set of 25% import taxes was set to kick in on automotive components. The trip, on the eve of his 100th day in office, comes as Americans take an increasingly dim view of Trump's economic stewardship, with indications his tariffs will weigh on growth and could drive up inflation and unemployment.