(WXYZ) — As the auto industry continues to grapple with President Donald Trump's tariff plans, automakers will see some relief after he signed an executive order easing tariffs.
Watch Simon Shaykhet's report in the video below:
The White House said the proclamation modifies current auto tariff policy, offering manufacturers a rebate on car parts used in U.S.-assembled vehicles.
Related Video: President Trump signs executive order softening tariffs for U.S. automakers
The amended order provides a rebate for one year of 3.75% relative to the sales prices of a domestically assembled vehicles. That figure was reached by putting the 25% import tax on parts that make up 15% of a vehicle's sales price. For the second year, the rebate would equal 2.5% of a vehicle's sales price, as it would apply to a smaller share of the vehicle's parts.
Now, we're hearing from workers and an auto expert about what they think.
Related: A timeline of Trump's tariffs
"There’s been a lot of future work, held off to see how this tariff works out. I do think pulling back is going to help these plants continue to thrive," Graham Allen, a worker at a Stellantis plant in Warren.
For Allen, the future is feeling uncertain. His thoughts about his own future making vehicles comes on the heels of Trump's visit to Macomb County on Tuesday, marking 100 days in office.
Related Video: President Donald Trump marks his first 100 days in office with rally in Warren
I reached out to auto industry analyst John McElroy to get a better understanding of the effect of tariff pullback. It's something carmakers have expressed appreciation for.
"This is the end of the road for relief. He’s made it clear he’s giving a little relief for those assembled in the states, but after two years, that relief goes away," McElroy said.
Hear more from John McElroy in the video below
I also asked where we could see the outcome of all this being felt most.
"You’re really going to see the impact at dealerships. There’s about 11 different car brands sold in the U.S. with no assembly here. By June or July, you’re going to see no car sales at those dealerships," McElroy said.
That message grabbed the attention of a variety of stakeholders looking to see economic stability along with jobs coming back.
For Allen, there's a belief that tariffs are needed; however, how they're applied makes a huge difference.
“I've worked in Canada and Mexico. I’ve noticed these tariffs have hurt the industry. I think backing off is going to help us for sure right now," Allen said.
Among those seeing a short-term boost are the dealers selling off what's already on the lot and unaffected by tariffs, but those vehicles are in limited supply.
The Associated Press contributed to this report.
