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Trump to sign executive order easing auto tariffs

President Donald Trump is set to sign an executive order on Tuesday to​ ease auto tariffs, the latest abrupt shift in a rapidly changing tariff policy that has left businesses scrambling to keep up.

The 25% tariff on imported cars will continue, and a new 25% tariff on auto parts will go into effect this weekend, as previously announced. But there’s some new fine print.

The executive order is set to allow reimbursements for domestic car producers importing car parts, which will be subject to 25% tariffs starting May 3, senior Commerce Department officials told reporters on Tuesday. The maximum reimbursement will be 3.75% of the value of domestically produced cars. The cap will decrease to 2.5% for the second year and be phased out entirely thereafter.

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