What is the Trump administration's plan for auto tariffs on foreign manufacturers?

The Trump administration plans to substantially increase auto tariffs over the course of a year, with rates potentially reaching 25% on imports. However, the policy includes an important incentive: foreign manufacturers who establish plants or factories within the United States will be exempt from these tariffs. This strategic approach aims to give foreign companies time to relocate their manufacturing operations to American soil, ultimately boosting domestic production and employment. The policy reflects the administration's broader economic strategy of using tariffs as leverage to encourage direct foreign investment in U.S. manufacturing infrastructure.