In a major development, President Donald Trump is likely to announce plans to ease tariffs on the auto industry, though a final decision is yet to be made. The move, if finalized, would offer significant relief to automakers, dealers, and suppliers across the United States.

On 3rd April 2025 President Donald Trump Announced 25% tariffs on Foreign Cars (The cars Which are not manufactured in USA) and Auto Components 

Now According to early indications, Trump plans to lift certain levies on foreign parts used in U.S.-manufactured cars and trucks. Imported automobiles may also be shielded from double tariffs on steel and aluminum if the plan goes through.

Official Statement

Commerce Secretary Howard Lutnick commented on the proposal, calling it a "major win" that would reward domestic manufacturing while providing companies time to invest further in U.S. operations.

Tariff Adjustment Details

Automakers could become eligible for partial reimbursements for tariffs on imported parts, based on their U.S. production volume.

The reimbursements would phase out gradually, aiming to encourage companies to shift supply chains back to the United States.

Industry Response

Industry players — including automakers, dealers, and suppliers — had previously lobbied for tariff relief, warning that ongoing tariffs could disrupt the North American supply chain and raise costs.

Trump’s Broader Trade Strategy

This shift signals an evolving trade approach by President Trump. It follows earlier pauses on tariff hikes intended to provide more time for negotiations, and suggests a more flexible, strategic trade posture.

Stocks to Watch

Market analysts are closely watching Bharat Forge, as close to 41% of its standalone revenue comes from North America, potentially making it sensitive to any finalized tariff changes.

Sona BLW also derives 43% of its revenue from United States Market and when including revenu From US based Orignal equipment manufacturers then US revenue can Reach upto 60%