• President Donald Trump eased auto tariffs with an executive order and proclamation on Tuesday
• While not a permanent rollback, the changes are intended to give U.S. auto companies "a little bit of a break" 
• Auto companies like Ford and Stellantis say they "welcome and appreciate" the move, which came on Trump's 100th day in office

President Donald Trump signed a series of executive orders and proclamations to ease auto tariffs on April 29. 

The new order upholds the 25% tariffs on imported cars, as well as the 25% tariff on auto parts that went into effect on May 3. However, new actions allow for reimbursements for domestic car producers importing car parts. The maximum reimbursement will be 3.75% of the value of domestically produced cars. This will decrease to 2.5% for the second year and be phased out entirely thereafter.

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The changes also prevent automakers from facing multiple tariff charges. Instead of paying tariffs on the individual components of the parts, such as steel and aluminum, they will be paying only the single highest tariff on whatever they're importing. 

Additionally, cars that are made domestically and have at least 85% of their parts made in compliance with the United States-Mexico-Canada agreement will not face any tariffs.  

At a rally in Michigan on April 29, to mark his 100th day in office, Trump said the executive orders will give U.S. auto companies "a little bit of a break," while they work to move manufacturing back to the country. "We gave them a little time before we slaughter them if they don't do this," he said.

"[U.S. auto companies] took in parts from all over the world," Trump continued. "I don't want that. I want them to make their parts here."

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