President Donald Trump signed executive orders on Tuesday to ease his 25% tariffs on some automobiles and auto parts, aiming to support domestic manufacturers and prevent price hikes. The revised policy allows vehicles assembled in the US with foreign parts to receive temporary rebates, 3.75% of a vehicle's sale price in the first year and 2.5% in the second.

The move follows warnings from automakers that the original tariffs could reduce competitiveness and increase consumer costs. Trump said the changes are intended to support a short-term transition as companies shift more production to the US.

Treasury Secretary Scott Bessent emphasized that the goal is job creation in American factories. However, analysts cautioned that large-scale production shifts require time and major investment, highlighting the industry's need for stability in trade policy.