The Trump administration will reduce tariffs on foreign auto parts used in US made vehicles and prevent overlapping levies, aiming to support domestic manufacturing.

The policy shift, confirmed by officials and set to be announced Tuesday, comes ahead of President Trump’s visit to Michigan marking his first 100 days in office, according to Reuters.

Commerce Secretary Howard Lutnick described it as a "major victory" for US trade policy, rewarding companies that invest in American industry. Automakers will also receive compensation for previous steel and aluminum taxes.

The change comes after industry groups such as General Motors, Toyota, and Volkswagen warned that anticipated 25% tariffs on imported parts will raise prices, reduce sales, and disrupt the supply chain, Reuters reported.