The White House stated that Trump is considering exempting some automakers from tariffs.

According to foreign media reports, the US government confirmed on April 23 that Donald Trump is considering granting tariff exemptions to some automakers.

Earlier reports suggested that the Trump administration planned to grant tariff exemptions for Chinese auto parts, as well as for certain steel and aluminum products. The White House's statement confirmed these reports.

This exemption will be independent of two established tariff policies: the 25% tariff on imported vehicles and the 25% tariff on imported auto parts originally set to take effect on May 3. Following the news, shares of several automakers and suppliers rose slightly in after-hours trading on April 23.

In a separate report on April 23, Trump indicated that he might further increase the 25% tariff rate on cars imported from Canada. Trump told reporters in the Oval Office, "Currently, Canadian cars entering the US are subject to a 25% tariff, but this rate could be raised. Frankly, we don’t need to import cars; the US is fully capable of manufacturing them on its own."

However, automakers and industry policy organizations are actively lobbying the Trump administration to seek tariff relief, as the escalating tariff policies have already placed a heavy burden on the automotive industry.

The Trump administration's latest tariff policies show that while automotive products have been excluded from the so-called "reciprocal" geographic tariffs (i.e., hefty tariffs on goods imported from dozens of countries), the industry still faces dual pressures, including a 25% raw material tariff on imported steel and aluminum semis, and a 25% end-user tariff on all imported vehicles.

Additionally, the import tariff on auto parts set to take effect on May 3 will further exacerbate the challenges faced by automakers.

Automotive industry executives generally expect the US government to introduce tariff exemptions or "phased relief" policies. Of particular concern to the industry is that the impending auto parts tariff could lead to layered cost increases. According to the Alliance for Automotive Innovation, this policy could increase vehicle production costs by 8% to 12%.

This week, the six leading policy organizations in the US automotive industry took the rare step of jointly lobbying the Trump administration to halt the impending auto parts tariff.

In a joint letter to Trump administration officials, the six industry organizations stated, "President Trump has shown an intention to reconsider the 25% import tariff on auto parts, similar to the recently approved tariff relief for consumer electronics and semiconductors. If the policy is adjusted, it will effectively alleviate industry pressure and bring positive impacts."

On April 23, General Motors CEO Mary Barra expressed concerns similar to those of other automaker executives, emphasizing the need for a clearer and more stable policy and regulatory environment to enhance market competitiveness. Barra stated at the Semafor World Economy Summit, "First, we need policy certainty, and second, continuity. Only under a clear policy framework can we make responsible capital allocation decisions."

Barra noted that General Motors has made some business adjustments in response to evolving trade policies but will not implement any "major strategic shifts" until US regulations are clarified.