U.S. President Donald Trump intends to exempt carmakers from select tariffs, the Financial Times reported Wednesday, citing informed sources.
According to the report, the planned exemptions would apply to tariffs on Chinese imports tied to the country’s role in fentanyl production.
Car parts would also be excluded from existing levies on steel and aluminum, offering relief to the automotive industry burdened by rising production costs.
The move signals a potential recalibration in U.S. trade policy, aiming to shield domestic manufacturers from collateral damage in geopolitical disputes.
Sources told the Financial Times that discussions are ongoing, and final decisions have not yet been made by the administration.
The automotive sector, heavily reliant on global supply chains, has lobbied for tariff rollbacks to remain competitive amid tightening profit margins.
If implemented, the exemptions could ease tensions between Washington and Detroit, while sending a broader message to international trade partners.
Analysts note the decision may be politically timed, as Trump courts industrial support ahead of a heated election cycle.
Neither the White House nor the U.S. Trade Representative has officially commented on the reported plans.