President Donald Trump signed a proclamation Friday granting U.S. automakers extended relief from tariffs on imported parts while simultaneously imposing a new 25% import tax on medium and heavy-duty trucks beginning Nov. 1.
The rebate program, initially introduced in April as a short-term measure to offset tariff costs, was scheduled to expire in 2027 but will now continue through 2030. The move is designed to support domestic production as automakers adjust to Trump’s broader trade policies.
“The goal is to expand domestic manufacturing and make it more competitive,” senior administration officials said, noting the decision followed discussions with auto industry leaders. The extended rebate equals 3.75% of a vehicle’s sales price — derived from a 25% tariff on imported parts accounting for roughly 15% of production costs.
The rebates will now also apply to truck and engine manufacturers. Buses will face a separate 10% import tariff. However, imports from nations covered under the U.S.-Mexico-Canada Agreement will remain exempt.
The policy reflects Trump’s strategy to encourage companies to relocate production to the United States while mitigating immediate cost pressures on domestic automakers. Still, the announcement comes as U.S. consumers face record vehicle prices — averaging $50,080 in September, according to Kelley Blue Book, a 3.6% increase over last year.
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