It’s being reported now that President Trump is scaling back his 25% tariffs within the automotive industry after carmakers complained that it would take time for them to get some of the parts they need for vehicles to be manufactured in America.

The Hill explains below:

The Trump administration is scaling back its 25 percent tariffs on imported automobiles and auto parts that are scheduled to go into effect May 3.

The Trump administration said it will spare foreign auto parts from facing a double hit from the president’s auto tariffs and his previously imposed import taxes on foreign metals, instead charging the highest available rate per product.

The administration will also allow automakers to apply for 15 percent price offsets in the first year of the tariffs and a 10 percent offset in the second year in a bid to get companies to increase domestic production of automobiles.

The cost reductions for carmakers — which the administration is calling offsets and distinguishing from rebates — will be phased out in the third year, by which time officials expect auto supply chains to be sufficiently reshored. After the end of the second year, the 25 percent import tax on auto parts will be levied in full.

On a call with reporters Tuesday, White House and Commerce Department officials said that the 15 and 10 percent reductions would be applied to the manufacturer’s recommended car price.

Walking through the calculations, officials multiplied the 15 and 10 percent offsets to the 25 percent auto part tariff rate, arriving at effective tariff reductions of 3.75 percent and 2.5 percent.

The average value of the offset would be around $1,500 per vehicle, they said.

The reductions would apply equally to foreign automakers and domestic automakers as long as production takes place within the United States and uses American workers.

The decision to reduce tariffs rates on car parts was made with input from the auto industry, who argued that it would take time to adjust their supply chain toward increased domestic production. Administration officials said that this argument struck them as reasonable and practical.

Auto parts covered under the U.S.-Mexico-Canada Agreement (USMCA), which were exempted from previous tariff increases, would continue to be exempt, officials said.

President Trump also addressed this himself a few minutes ago: