Yahoo Finance

White House press secretary, Karine Jean-Pierre, confirmed Tuesday morning that President Trump will soon sign an update on auto tariffs. Here with the details, we've got senior autos reporter, Pras Subramanian. Pras, what are we expecting here?

Hey, Brad. So, you know, long time coming here of relief for the auto sector. Uh, as first reported by the Wall Street Journal and confirmed by Howard Letnick last night, and Karine Jean-Pierre saying today that something's coming. But we don't have the details yet. The journal claimed that there are some, uh, little few features here. So first and foremost, uh, they want to prevent, uh, tariffs on foreign-made cars stacking up on top of other tariffs as currently imposed. So it means the automakers paying Trump's auto tariffs won't actually be charged for other duties, like uh, steel and aluminum tariffs that are currently existing. Uh, and that, and that move would be retroactive to April 2nd when the tariffs began, meaning that automakers would get reimbursed for some of that, uh, tariff expense. Uh, secondly, on auto parts which would be coming on May 3rd, uh, they'd also be reimbursed up to, up to an amount equal to 3.75% of the value of a US-made car for one year, then 2.5% the year after that before being phased out. So getting a little bit of relief there, uh, from the auto parts, uh, portion as well. A lot going on here. So, uh, we don't, we're still kind of working on the details, but the automakers will take it, right? So, uh, Ford CEO, Jim Farley, put out a statement, uh, claiming that Ford welcomes and appreciates these decisions by President Trump, which will help mitigate the impact of tariffs on automakers, suppliers, and consumers. So more to come here later today on some of these auto part tariff or auto exemptions potentially on tariffs.

Pras, thanks so much.

Thank you.