Commerce Secretary Lutnick confirms trade deal, tariff relief for US automakers

The Trump administration has reached a trade deal affecting the auto industry, with Commerce Secretary Howard Lutnick confirming that tariff relief will be provided for American automakers and vehicles finished in the U.S., while tariffs will still apply to foreign-made vehicles. The new policy will phase in tariff relief over three years, allowing automakers time to adjust supply chains and grow domestic production. Cars finished in the U.S. with at least 85% domestic content will be exempt from tariffs, and manufacturers will receive a 15% offset for the value of these vehicles against parts imports. The deal is intended to reward companies manufacturing domestically and support American workers, although some experts warn it could increase market volatility and vehicle prices. Industry responses have been mixed, with some automakers' shares rising and others expressing concern about complexity and potential for market abuse. The administration emphasizes that these measures are designed to reset global trade and protect the American economy.