Trump offers automakers some relief on his 25% tariffs, after worries they could hurt US factories

WASHINGTON (AP) — President Donald Trump signed executive orders Tuesday to relax some of his 25% tariffs on automobiles and auto parts, a significant reversal as the import taxes threatened to hurt domestic manufacturers.

Automakers and independent analyses have indicated that the tariffs could raise prices, reduce sales and make U.S. production less competitive worldwide. Trump portrayed the changes as a bridge toward automakers moving more production into the United States.

“We just wanted to help them during this little transition, short term," Trump told reporters. "We didn’t want to penalize them. ”

Treasury Secretary Scott Bessent, who spoke earlier at a White House briefing on Tuesday, said the goal was to enable automakers to create more domestic manufacturing jobs.

“President Trump has had meetings with both domestic and foreign auto producers, and he’s committed to bringing back auto production to the U.S.,” Bessent said. “So we want to give the automakers a path to do that, quickly, efficiently and create as many jobs as possible.”

Trump signed one order on Tuesday that amended his previous 25% auto tariffs, making it easier for vehicles that are assembled in the U.S. with foreign parts to not face prohibitively high import taxes.

The amended order provides a rebate for one year of 3.75% relative to the sales prices of a domestically assembled vehicles. That figure was reached by putting the 25% import tax on parts that make up 15% of a vehicle's sales price. For the second year, the rebate would equal 2.5% of a vehicle's sales price, as it would apply to a smaller share of the vehicle's parts.

A senior Commerce Department official, insisted on anonymity to preview the order on a call with reporters, said automakers told Trump that the additional time would enable them to ramp up the construction of new factories, after automakers warned that it would take time for them to shift their supply chains. The official said automakers would over the next month announce additional shifts for workers, new hires and plans for new facilities.

Stellantis Chairman John Elkann said in a statement that the company appreciates the president's tariff relief measures.

“While we further assess the impact of the tariff policies on our North American operations, we look forward to our continued collaboration with the U.S. Administration to strengthen a competitive American auto industry and stimulate exports," he said.

General Motors CEO Mary Barra said the automaker is grateful for Trump's support of the industry, and she noted the company looks forward to conversations with the president and working with the administration.

“We believe the President’s leadership is helping level the playing field for companies like GM and allowing us to invest even more in the U.S. economy," Barra said in a statement.

Jim Farley, president and CEO of Ford Motor Company, stressed that his company does more than its peers to manufacture domestically.

“We will continue to work closely with the administration in support of the president’s vision for a healthy and growing auto industry in America," Farley said. “As the right policies are put in place, it will be important for the major vehicle importers to match Ford’s commitment to building in America. If every company that sells vehicles in the U.S. matched Ford’s American manufacturing ratio, 4 million more vehicles would be assembled in America each year.”

But changing direction doesn't help an industry that thrives on stability, said Sam Fiorani, analyst at business forecasting firm AutoForecast Solutions.

“Finding a way to get the auto industry back working has to be paramount in this,” Fiorani said. “The tariffs have not looked at this industry, the way it works, and expect it to be able to jump and relocate production at the blink of an eye. It just doesn’t work that way.

“Making a production change for vehicle manufacturing takes minimum, months, and usually years, along with hundreds of millions if not billions of dollars,” he added. "And so it is not something that they take lightly.”

The Wall Street Journal first reported details of the actions. The White House's Rapid Response account on X said Trump signed a second order Tuesday afternoon to prevent his various tariffs from being stacked on top of his existing taxes on imported autos and auto parts.

The tariffs imposed by Trump were seen by some as an existential threat to the auto sector. Arthur Laffer, whom Trump gave the Presidential Medal of Freedom to during his first term, said in a private analysis that the tariffs without any modifications could add $4,711 to the cost of a vehicle.

New vehicles sold at $47,462 on average last month, according to auto-buying resource Kelley Blue Book. Tariffs stress the automotive supply chain, a complex web which spans the globe. Not only do many auto parts cross North American borders several times before being assembled into a finished vehicle, auto manufacturers rely on suppliers around the world for thousands of components.

Increased levies would certainly cost new car buyers — sensitive to inflation — more, driving them to the used vehicle market and quickly straining the availability of pre-owned cars. Tariffs also impact the cost of owning and maintaining a vehicle.

The modifications come as Trump marks 100 days back in the White House by going to Michigan, a state defined by auto manufacturing. Trump won the state in last year's election by promising to increase factory jobs.

Still, it remains unclear what impact Trump's broader tariffs will have on the U.S. economy and auto sales. Most economists say the tariffs — which could ultimately hit most imports — would raise prices and slow economic growth, possibly hurting auto sales despite the relief that the administration intends to offer on its previous policies.

St. John contributed from Detroit.

President Donald Trump waves as he boards Air Force One, Tuesday, April 29, 2025, at Joint Base Andrews, Md. (AP Photo/Alex Brandon)

White House press secretary Karoline Leavitt speaks during a briefing with Treasury Secretary Scott Bessent at the White House, Tuesday, April 29, 2025, in Washington. (AP Photo/Evan Vucci)

White House press secretary Karoline Leavitt and Treasury Secretary Scott Bessent participate in a press briefing at the White House, Tuesday, April 29, 2025, in Washington. (AP Photo/Evan Vucci)

President Donald Trump arrives to welcome the Super Bowl champion Philadelphia Eagles NFL football team to the South Lawn of the White House, Monday, April 28, 2025, in Washington. (AP Photo/Alex Brandon)

MINNEAPOLIS (AP) — Federal agents carrying out immigration arrests in Minnesota's Twin Cities region already shaken by the fatal shooting of a woman rammed the door of one home Sunday and pushed their way inside, part of what the Department of Homeland Security has called its largest enforcement operation ever.

In a dramatic scene similar to those playing out across Minneapolis, agents captured a man in the home just minutes after pepper spraying protesters outside who had confronted the heavily armed federal agents. Along the residential street, protesters honked car horns, banged on drums and blew whistles in attempts to disrupt the operation.

Video of the clash taken by The Associated Press showed some agents pushing back protesters while a distraught woman later emerged from the house with a document that federal agents presented to arrest the man. Signed by an immigration officer, the document — unlike a warrant signed by a judge — does not authorize forced entry into a private residence. A warrant signed by an immigration officer only authorizes arrest in a public area.

Immigrant advocacy groups have conducted extensive “know-your-rights” campaigns urging people not to open their doors unless agents have a court order signed by a judge.

But within minutes of ramming the door in a neighborhood filled with single-family homes, the handcuffed man was led away.

More than 2,000 immigration arrests have been made in Minnesota since the enforcement operation began at the beginning of December, said Homeland Security spokesperson Tricia McLaughlin.

Homeland Security Secretary Kristi Noem told Fox News on Sunday that the administration would send additional federal agents to Minnesota to protect immigration officers and continue enforcement.

The Twin Cities — the latest target in President Donald Trump’s immigration enforcement campaign — is bracing for what is next after 37-year-old Renee Good was shot and killed by an immigration officer on Wednesday.

“We’re seeing a lot of immigration enforcement across Minneapolis and across the state, federal agents just swarming around our neighborhoods,” said Jason Chavez, a Minneapolis city councilmember. “They’ve definitely been out here.”

Chavez, the son of Mexican immigrants who represents an area with a growing immigrant population, said he is closely monitoring information from chat groups about where residents are seeing agents operating.

People holding whistles positioned themselves in freezing temperatures on street corners Sunday in the neighborhood where Good was killed, watching for any signs of federal agents.

More than 20,000 people have taken part in a variety of trainings to become “observers” of enforcement activities in Minnesota since the 2024 election, said Luis Argueta, a spokesperson for Unidos MN, a local human rights organization .

“It’s a role that people choose to take on voluntarily, because they choose to look out for their neighbors,” Argueta said.

The protests have been largely peaceful, but residents remained anxious. On Monday, Minneapolis public schools will start offering remote learning for the next month in response to concerns that children might feel unsafe venturing out while tensions remain high.

Many schools closed last week after Good’s shooting and the upheaval that followed.

While the enforcement activity continues, two of the state’s leading Democrats said that the investigation into Good's shooting death should not be overseen solely by the federal government.

Minneapolis Mayor Jacob Frey and U.S. Sen. Tina Smith said in separate interviews Sunday that state authorities should be included in the investigation because the federal government has already made clear what it believes happened.

“How can we trust the federal government to do an objective, unbiased investigation, without prejudice, when at the beginning of that investigation they have already announced exactly what they saw — what they think happened," Smith said on ABC’s "This Week."

The Trump administration has defended the officer who shot Good in her car, saying he was protecting himself and fellow agents and that Good had “weaponized” her vehicle.

Todd Lyons, acting director of U.S. Immigration and Customs Enforcement, defended the officer on Fox News Channel’s “The Sunday Briefing.”

"That law enforcement officer had milliseconds, if not short time to make a decision to save his life and his other fellow agents,” he said.

Lyons also said the administration’s enforcement operations in Minnesota wouldn't be needed “if local jurisdictions worked with us to turn over these criminally illegal aliens once they are already considered a public safety threat by the locals.”

The killing of Good by an ICE officer and the shooting of two people by federal agents in Portland, Oregon, led to dozens of protests in cities across the country over the weekend, including New York, Los Angeles, Washington D.C. and Oakland, California.

Contributing were Associated Press journalists Giovanna Dell’Orto in Minneapolis; Thomas Strong in Washington; Bill Barrow in Atlanta; Christopher Weber in Los Angeles; and John Seewer in Toledo, Ohio.

A woman gets into an altercation with a federal immigration officer as officers make an arrest Sunday, Jan. 11, 2026, in Minneapolis. (AP Photo/John Locher)

A federal immigration officer deploys pepper spray as officers make an arrest Sunday, Jan. 11, 2026, in Minneapolis. (AP Photo/John Locher)

A family member, center, reacts after federal immigration officers make an arrest Sunday, Jan. 11, 2026, in Minneapolis. (AP Photo/John Locher)

Bystanders are treated after being pepper sprayed as federal immigration officers make an arrest Sunday, Jan. 11, 2026, in Minneapolis. (AP Photo/John Locher)

A family member reacts after federal immigration officers make an arrest Sunday, Jan. 11, 2026, in Minneapolis. (AP Photo/John Locher)

Federal agents look on after detaining a person during a patrol in Minneapolis, Minn., Sunday, Jan. 11, 2026. (Christopher Katsarov/The Canadian Press via AP)

Bystanders react after a man was detained by Immigration and Customs Enforcement (ICE) agents during a traffic stop, Sunday, Jan. 11, 2026, in Robbinsdale, Minn. (AP Photo/John Locher)

People stand near a memorial at the site where Renee Good was fatally shot by an ICE agent, Sunday, Jan. 11, 2026, in Minneapolis. (AP Photo/Jen Golbeck)

A man looks out of a car window after being detained by Immigration and Customs Enforcement (ICE) agents during a traffic stop, Sunday, Jan. 11, 2026, in Robbinsdale, Minn. (AP Photo/John Locher)

Border Patrol agents detain a man, Sunday, Jan. 11, 2026, in Minneapolis. (AP Photo/Adam Gray)

People shout toward Border Patrol agents making an arrest, Sunday, Jan. 11, 2026, in Minneapolis. (AP Photo/Adam Gray)

Demonstrators protest outside the White House in Washington, Saturday, Jan. 10, 2026, against the Immigration and Customs Enforcement agent who fatally shot Renee Good in Minneapolis. (AP Photo/Jose Luis Magana)

Minneapolis Mayor Jacob Frey holds a news conference on Saturday, Jan. 10, 2026, in Minneapolis. (AP Photo/Jen Golbeck)

Protesters react as they visit a makeshift memorial during a rally for Renee Good, who was fatally shot by an ICE officer earlier in the week, Saturday, Jan. 10, 2026, in Minneapolis. (AP Photo/John Locher)