The Department of Commerce is reportedly finalizing a plan to extend a current tariff offset program for automakers. The existing policy lets manufacturers subtract a portion of import duties if they assemble parts domestically. Under the new proposal, this offset could last for five years, rather than the shorter timeline it was originally set for.
Auto companies have heavily lobbied for this change, citing the burden of steep import tariffs lately. The move could give manufacturers breathing room to plan investments, adjust supply chains, and ease margin pressures—especially for U.S. and global players with parts dependence.
This shift isn’t just about saving money—it’s about recalibrating how auto companies think about where they build, import, and compete. If enacted, it could reshape industry strategy for years to come.