Trump Plans Auto Tariff Relief Amid 100-Day Administration Milestone

President Donald Trump will provide some tariff relief for automakers on Tuesday, which will include not stacking on additional levies on foreign-made cars, people familiar with the matter told The Wall Street Journal .

That means companies that pay Trump's 25% tariff on finished foreign-made cars won't be charged other levies, such as those on steel and aluminum. Automakers would likely be reimbursed for any additional tariffs they've already paid.

The Trump administration will also amend the 25% tariff on foreign auto parts to allow automakers to be reimbursed up to an amount equal to 3.75% of the value of a U.S.-made car for one year. The reimbursement would go down to 2.75% of the car's value the next year, and later phased out.

"President Trump is building an important partnership with both the domestic automakers and our great American workers," Commerce Secretary Howard Lutnick said in a statement to media.

"This deal is a major victory for the President's trade policy by rewarding companies who manufacture domestically, while providing runway to manufacturers who have expressed their commitment to invest in America and expand their domestic manufacturing," he added.

The tariff relief deal is expected to be announced on Tuesday, when Trump will visit U.S. automaking hub Michigan as he marks his first 100 days in office.

The industry had pushed back against Trump's tariffs on foreign auto parts, warning that they would lead to higher prices for consumers and lower sales.

Automotive stocks during early pre-market trading: GM ( NYSE: GM ) +1.1% , Ford ( NYSE: F ) +1.1% , Stellantis ( NYSE: STLA ) +3.4% .