US President Donald Trump will sign a new executive order on auto tariffs later on Tuesday, ahead of a rally in Michigan – home of the so-called Detroit Big Three.

In a White House press conference monitored by Kallanish, press secretary Karoline Leavitt confirmed an announcement would be made in the evening bearing good news for automakers. Speaking about Trump’s 100 days in office, Leavitt and treasury secretary Scott Bessent hinted Washington would take action to ease the impact of tariffs, days before certain auto parts levies were set to take effect.

The potential U-turn comes as carmakers intensify lobbying for the Trump administration to remedy the impact of the 25% tariffs on vehicles, parts, steel and aluminium on their operations. Carmakers are also exposed to “reciprocal tariffs” on certain goods in their value chain, which vary according to the goods country of origin.

On Monday evening, US commerce secretary Howard Lutnick touted the upcoming measures as a “major victory for the President’s trade policy,” as it will reward firms that manufacture domestically. The measures will reportedly reduce some import duties on parts, and prevent the 25% Section 232 tariffs from stacking up. That would mean carmakers would still pay the auto tariff, but not other levies such as the 25% duty on steel and aluminium.

The White House has not confirmed or denied market speculation.

Building momentum for Trump’s announcement, Bessent said the President has had meetings with both domestic and foreign auto producers. “He’s committed to bringing back auto production to the US, so we want to give automakers a pattern quickly, efficiently and create as many job as possible.”

Without detailing the auto tariff relief, Bessent said that “it will go substantially toward reshoring American auto manufacturing.” He added that the US tariff revenue will enable the country to provide income tax relief, including for American carmakers. The secretary also indicated that Trump’s planned tax bill would incorporate “full expensing for factories.”

“So bring your factory back, you can fully expense the equipment and the building. We will couple that with deregulation, cheap energy and regulatory certainty, and that will continue to make the US the greatest destination for domestic and foreign investment.”

General Motors posted a 6.6% decline in its Q1 net profit to $2.78 billion on Tuesday. However, it rescheduled its earnings presentation and call to Thursday due to changing trade policies.