President Trump eases tariffs for automakers
President Donald Trump signed an executive action to ease auto tariffs. The current 25% tariff leveled on imported cars will remain intact but that other similar tariffs, such as tariffs on steel and aluminum, will not stack on top of the 25% auto tariff, according to senior administration officials. LiveNOW’s Mike Pache talks about the impacts of tariffs with FOX Business’ Edward Lawrence.
General Motors is investing $4 billion in its U.S. plants over the next two years to boost the manufacturing of gas and electric vehicles.
With the multibillion-dollar investment, the Michigan-based automaker will be able to assemble more than 2 million vehicles per year in the U.S. The latest investment comes just two weeks after the company announced it earmarked $888 million for its Tonawanda Propulsion plant near Buffalo, New York, to support production of its next-generation V-8 engine.
Prior to the investments, the company was producing about 1.7 million vehicles in the U.S. It’s just one of many automakers that have pledged to build vehicles in the U.S. and to support American jobs.
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“We believe the future of transportation will be driven by American innovation and manufacturing expertise,” said GM CEO Mary Barra.
The company’s commitments, along with other heavy hitters in the industry, come as President Donald Trump imposes tariffs on imported vehicles to boost domestic auto manufacturing. In April, Trump imposed a 25% tariff on all imported passenger vehicles, followed by a separate 25% tariff on imported auto parts such as engines, transmissions, power-train parts and electrical components in May.
With the multibillion-dollar investment, the Michigan-based automaker will be able to assemble more than 2 million vehicles per year in the U.S. (Emily Elconin/Bloomberg via / Getty Images)
Barra recently backed the administration’s automotive tariffs, saying they will pave the way for U.S. automakers to compete more fairly in the international market.
“We believe the future of transportation will be driven by American innovation and manufacturing expertise,” said GM CEO Mary Barra. (Artur Widak/NurPhoto via / Getty Images)
There are currently 50 GM manufacturing plants and parts facilities in 19 states, including 11 vehicle assembly plants.
Plants in Michigan, Kansas and Tennessee will expand finished vehicle production of several of GM’s most popular vehicles. At the Orion Assembly plant in Michigan, the automaker will begin production of gas-powered full-size SUVs and light-duty pickup trucks in early 2027 to help meet continued strong demand. Meanwhile, GM’s Factory ZERO in Detroit-Hamtramck, Michigan, will be the dedicated assembly location for the Chevrolet Silverado EV, GMC Sierra EV, Cadillac Esccalade IQ and GMC Hummer EV pickup and SUV, according to GM.
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At its Fairfax Assembly plant in Kansas City, Kansas, GM will produce the gas-powered Chevrolet Equinox beginning in mid-2027 after the company saw significant demand for the vehicle. Sales of the recently redesigned Equinox rose more than 30% year over year in the first quarter of 2025.
The plant is on track to begin building the 2027 Chevrolet Bolt EV by the end of this year. Future investments in the plant will be geared toward GM’s next generation of affordable EVs, according to GM.
Meanwhile, GM will produce the gas-powered Chevrolet Blazer, the Cadillac Lyriq and Vistiq EVs, and the Cadillac XT5 at the Spring Hill Manufacturing plant in Tennessee.
The company projected that its annual capital spending through 2027 will be in the range of $10 billion to $12 billion due to increased investment in the U.S., the prioritization of key programs and efficiency offsets.
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