Media reports suggest that Trump is considering significantly reducing tariffs on American-made cars, causing automotive stocks to rise in response

U.S. Republican Senator Bernie Moreno and automotive industry insiders revealed to the media on Friday that President Trump is considering significant tariff reductions for U.S. auto production, which could essentially erase most of the costs currently borne by large automakers. Moreno stated in an interview: "The signal to car companies around the world is: if you do final assembly in the U.S., we will reward you. For Ford, Toyota, Honda, Tesla, General Motors—these are almost the top five automakers ranked by U.S. content—they will be exempt from tariffs." Moreno, a former car dealer, currently serves as a member of the Senate Commerce Committee, which oversees automotive-related issues, and he is actively involved in automotive policy matters. Following the announcement, automaker stock prices rose sharply. Ford closed up 3.7%, Chrysler's parent company Stellantis rose 3.2%, and General Motors increased by 1.3%. Analysts believe that if this extended tariff reduction policy is finalized, it will provide greater incentives for automakers to build factories in the U.S., aligning with Trump's policy goal of creating American jobs. The U.S. Department of Commerce stated in June that it plans to implement an "import adjustment offset" for qualifying vehicles assembled in the U.S., starting at 3.75% of the retail suggested price in the first year to address tariffs on imported auto parts; the second year would be 2.5%. Moreno and industry insiders indicated that Trump is considering maintaining the offset at 3.75%, extending the offset period to five years, and expanding the scope to U.S. engine production. Moreno expressed his belief that Trump will make a final decision soon. He stated: "Ultimately, it is of course the president's decision, but I am absolutely excited that we are building an incentive system that truly distinguishes those who rely solely on imports from those who manufacture in the U.S." Moreno added that automakers with significant final production processes in the U.S. should receive tariff exemptions: "You see, in the end, they are doing what we want them to do—paying employees well in the U.S., doing final assembly in the U.S., and selling cars in the U.S." White House Official: "Still Speculative" When asked for comments on the proposal, a White House official told the media that Trump and the administration "are committed to a detailed and multifaceted approach to ensure domestic auto and parts production." However, the official added: "Any discussions about government policy formulation remain speculative until the president signs any formal action." In May, Trump imposed a 25% tariff on over $460 billion in annual imports of cars and parts, but subsequently reached agreements with several countries, including Japan, the UK, and the EU, to reduce tariffs on those countries and regions The Ministry of Commerce also stated in May that it would increase steel and aluminum tariffs on over 400 products, many of which are automotive parts, totaling about $240 billion in annual imports. These parts include automotive exhaust systems, electrical steel (used for electric vehicles), and bus components. It is currently unclear whether automakers will be able to apply the exemptions to mitigate the impact of the steel and aluminum tariffs. In addition, the Trump administration has delayed the final implementation of new tariffs on heavy trucks that were supposed to take effect this week and is considering whether to impose a new 25% tariff on them. General Motors previously stated that it could face cost impacts of up to $5 billion this year due to tariffs, while Ford indicated it would be affected by a gross tariff impact of $3 billion