US President Donald Trump is considering a major reduction in tariffs for manufacturers producing in the United States. According to Republican Senator Bernie Moreno, Ford, Toyota, Honda, Tesla, and General Motors could be exempt from current duties due to their high domestic content. The message from the White House to foreign manufacturers would be clear: only vehicles assembled on US soil would benefit from these advantages.
Since June, a tariff compensation of 3.75% of the recommended retail price has applied to vehicles assembled in the US, with a reduction to 2.5% planned for April 2026. However, the Trump administration is now considering extending this initial rate for five years and extending it to local engine production, thus providing additional leverage to encourage industrial relocation. This approach would widen the gap between US-based manufacturers and importers.
The White House has not officially confirmed the plan, merely referring to a "nuanced and multi-faceted" strategy aimed at consolidating automobile and parts production. If implemented, this policy would constitute a new pillar of the reindustrialization program, following the elimination of federal tax credits for electric vehicles. Foreign manufacturers setting up assembly lines or engine plants on US soil could benefit from this, strengthening the link between trade protection and industrial recovery.
