United States President Donald Trump is reportedly preparing to ease the impact of his automotive tariffs in a move designed to reduce overlapping duties on carmakers and offer financial relief to the auto industry. According to sources cited by the Wall Street Journal, Trump is expected to prevent duties on foreign-manufactured vehicles from stacking on top of his other tariffs, such as those on steel and aluminum.

The administration's anticipated decision would also affect tariffs on foreign auto parts used in the manufacturing of vehicles within the U.S. The revised policy would be retroactive, meaning that automakers might qualify for reimbursement for tariffs already paid. Under the plan, automakers could be reimbursed up to 3.75% of the value of a U.S.-made car during the first year, followed by a reduced reimbursement rate of 2.75% in the second year, after which the reimbursement program would be fully phased out.

This approach is designed to provide targeted relief for car manufacturers that have been impacted by Trump’s existing trade measures while maintaining key tariff structures. The move would allow automakers to offset some of the additional costs incurred from using foreign parts and raw materials, particularly as they relate to steel and aluminum tariffs imposed earlier by the administration.

The timing of the expected policy shift is noteworthy, as President Trump is scheduled to hold a rally on Tuesday evening. While no official statement has been released, sources familiar with the matter suggest the announcement may be intended to resonate with American workers and the domestic auto industry in advance of the event.

Should the decision be implemented as reported, it would mark a significant adjustment in Trump’s broader trade policy strategy, signaling a willingness to recalibrate tariffs in order to sustain domestic production and address concerns raised by industry leaders.