Here’s what President Donald Trump is doing about that today to save America’s automakers. We know that through an executive order he intends to both lessen the impact of his administration’s auto tariffs. This action comes as he marks 100 days in office and seeks to address concerns raised by industry leaders regarding the sustainability of high tariffs on imported vehicles and parts.
The executive order would revoke the newly enacted vehicles tariffs for automakers. This provides them additional time to prepare to modify their supply chains and shift production back to the United States. Commerce Secretary Howard Lutnick stated that this initiative is crucial for supporting American manufacturers as they navigate the complexities of tariff-related challenges.
Scott Bessent, an economic advisor, warned about the long-term consequences of the ongoing tariff war, especially for China. He further warned that the very high tariffs would cost as many as 10 million jobs in China. Collectively, this third-shift development indicates a profound economic transition. Bessent emphasized that the Trump administration is striving for a balance that promotes domestic manufacturing while mitigating adverse effects on international trade partners.
In his comments before the signing, Trump targeted Amazon at the signing. He called the move by the company to show tariff costs to customers a “hostile and political act,” which he condemned. This accusation followed a 1.3% drop in Amazon’s shares at the start of trading, attributed to the White House’s discontent with the company’s transparency regarding tariff impacts.
“This is a hostile and political act by Amazon.” – Donald Trump (via Karoline Leavitt)
The executive order removes pressure from automakers. It’s in keeping with the Trump administration’s overall push to get companies to move back to America. Bessent pointed to the BIP 53 bill’s word that factory and equipment buys will be fully expensed. This policy will be retroactive to January 20th. This measure will bring long overdue tax relief to small businesses and make income taxes lower for many of their employees.
Bessent made a strong case that tariff revenues could be used to eliminate or significantly reduce federal income taxes on working Americans. He argued that this tax restructuring could reduce or even remove tax liabilities for many individuals.
As the administration begins to chart its trade policies going forward, it is still very much in discussions with multiple countries. In her opening remarks, Bessent stated that detailed conversations have occurred with Japan. A successful trade agreement with South Korea is just starting to come together. He also indicated that the administration is “exceedingly close” to announcing a trade agreement with India. This is indicative of their long-term campaign to change international trade partners.
This is a big change from Trump’s hardline stance on tariffs – something that he’s started telegraphing in his recent tweets and statements. We hope the administration will work to stop the internet tax in the European Union. This action demonstrates its determination to change the rules of trade agreements in favor of American factory workers and business owners.
In reaction to the chaotic first 100 days of his presidency, proponents of transportation and environmental protection have rightly raised alarm over the administration’s direction. Hakeem Jeffries expressed strong disapproval, stating, “The Trump administration has been an unmitigated disaster over the first 100 days.”
Speaker Mike Johnson offered a refreshing change of tune, recognizing that such transitions into new administrations are hard to come by. He remarked, “In any new administration, it’s a rollercoaster. When you come in and you make dramatic change, which is what he did – he’s delivering on the promises made – there are some bumps along the road. I mean, we’re changing everything.”
We are relieved that President Trump is preparing to sign just such a pivotal executive order. His administration has, as a core objective, sought to reshape the nature of domestic manufacturing and international trade. Industry stakeholders and political analysts alike will be paying very close attention to the implications of these policies. Their effect will come into view over the coming weeks and months.