Trump administration reaches tentative auto tariff deal as trade tensions mount

The Trump administration says it has reached a deal with automakers that could ease looming tariff concerns.

(CNN)- The Trump administration says it has reached a deal with automakers that could ease looming tariff concerns. A proposed 25% duty on most auto parts is set to take effect by Saturday, adding to existing tariffs on steel, aluminum, and nearly all imported vehicles.

Commerce Secretary Howard Lutnick says the agreement rewards companies that manufacture domestically while giving time to others that have committed to investing in the U.S. However, the specifics of the deal remain unclear.

General Motors CEO expressed gratitude to President Trump in a statement, while Interior Secretary Doug Burgum praised the President’s approach. “He’s fearless in fighting for every American,” Burgum said, adding that the changes will benefit the U.S. economy.

In a related move, Chinese imports valued at $800 or less will lose their tariff exemption starting Friday. Some Chinese e-commerce companies say they’ve already raised prices for American consumers in response. Public reaction to the shifting trade policies appears to be negative. A new CNN poll shows 59% of Americans believe Trump has worsened the U.S. economy, with additional polling suggesting a decline in his overall approval rating.

“This Trump poll from CNN just spells trouble for the Trump presidency part two,” said CNN Chief Data Analyst Harry Enten.