The U.S. government has announced a big change in its auto tariff policy. President Trump’s administration says it will reduce the impact of tariffs, on the car industry. These tariffs had been causing trouble for many American carmakers and workers.

The Trump administration will also amend the 25% tariff on foreign auto parts to allow automakers to be reimbursed up to an amount equal to 3.75% of the value of a U.S.-made car for one year. The reimbursement would go down to 2.75% of the car's value the next year, and later phased out.