Media: The White House says Trump plans to exempt auto manufacturers from some tariffs

Media reports indicate that after intense lobbying from automotive executives in recent weeks, U.S. President Trump plans to exempt some of the harshest tariffs faced by automakers. Analysts believe this is another concession from Trump in the trade war.

Some media outlets report that Trump intends to exempt certain tariffs on auto parts, including tariffs on imported steel and aluminum products. Another media outlet stated that the White House has confirmed that Trump plans to exempt some tariffs for automakers.

Insiders told the former media outlet that this move is referred to as "destacking" of tariffs. However, this exemption does not include the 25% tariff on imported vehicles and does not affect the 25% tariff on imported auto parts set to take effect on May 3.

Analysts believe this concession will be a preliminary victory for the automotive industry and represents another retreat by Trump from his most aggressive tariff policies, due to concerns that these tariffs could drive up U.S. car prices, disrupt supply chains, and lead to job losses.

Following the news, automotive stocks surged in after-hours trading. General Motors saw a peak increase of 6.1%, Ford rose by 3%, and Stellantis surged by 6.8% in after-hours trading, although the stock prices later retreated.

Reports indicate that in the past week, automotive executives have intensified their criticism of the tariffs. Stellantis Chairman John Elkann warned that "Trump's trade policies are putting the U.S. and European automotive industries at risk."

Another senior automotive industry executive stated:

"We have urged the government—not to repeatedly hit us with these additional tariffs... because it truly jeopardizes the health of our entire industry."

Additionally, this tariff exemption is the latest sign of Trump providing a "carve-out" to specific industries following a significant sell-off in global markets and warnings of a potential recession in the U.S. triggered by his tariff plans earlier this month.

On April 2 local time, according to CCTV News, the White House issued a statement saying that Trump would impose a 10% "baseline tariff" on all countries. On April 9 local time, the White House announced a 90-day suspension of implementation, but there remains a risk of triggering a comprehensive global trade conflict.

According to the Global Times, late on April 11 Eastern Time, the U.S. Customs and Border Protection published a notice on its official website: the federal government has agreed to exempt "reciprocal tariffs" on electronic products such as smartphones, computers, and chips; the exempted products apply to electronic products entering the U.S. after April 5, and previously paid "reciprocal tariffs" can seek refunds.

Last week, Trump also stated that he would provide "help" to the automotive industry. He had previously indicated that as long as companies comply with the provisions of the 2020 U.S.-Mexico-Canada Agreement (USMCA), they could receive more favorable treatment for vehicles imported from Mexico and CanadaFor vehicles and parts that comply with the USMCA agreement terms, only the "non-U.S. content" portion will be subject to a 25% tariff. Informed sources told the media that the current focus of negotiations is mainly on how to simplify the enforcement of tariffs, such as by streamlining the rules of origin for automotive parts to simplify the implementation process.

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