Exactly two weeks after Trump delayed tariffs on most non-China countries by 90 days, and a week after the president exempt most Chinese consumer electronics exports from US duties, the FT reports that Trump is set to spare carmakers from some of his most onerous tariffs following intense lobbying by industry executives over recent weeks.

The move would exempt car parts from the tariffs that Trump is imposing on imports from China to counter fentanyl production, as well from those levied on steel and aluminium, a move which FT sources described as a “destacking” of the duties.

The exemptions would leave in place the 25% tariff Trump imposed on all imports of foreign-made cars. A separate 25% levy on parts would also remain and is due to take effect from May 3.

Although Washington has already shielded autos from the “reciprocal” tariffs announced on major trading partners, US auto companies have in recent weeks pushed for further exemptions. The concessions would mark an initial win for the auto sector and another retreat by Trump on his most aggressive tariffs amid concerns that they would push up US car prices, disrupt supply chains and cause job losses.

Over the past week, car executives had stepped up their criticism of the tariffs with Stellantis chair John Elkann warning that “American and European car industries are being put at risk” by Trump’s trade policy. Another senior automotive executive said: “we’ve urged the administration - don’t hit us over and over with all of these other tariffs . . . because that really jeopardises the health of our sector.”

The reprieve is also the latest sign Trump is open to offering carve-outs to favored industries.

Trump announced bespoke “reciprocal” tariffs of up to 50% on almost every US trading partner on “liberation day” on April 2, before later lowering the levies to a 10% baseline for 90 days, following a surge in market volatility.

Last week, the administration said it would exempt consumer electronics such as laptops and smartphones from the reciprocal tariffs but would instead potentially hit those imports with other levies later this year.

The president also signaled last week that there would be “help” for the auto industry, and earlier offered better terms for imports of cars made in Mexico and Canada as long as companies complied with the rules of the 2020 USMCA trade agreement.

Complete vehicles and parts that comply with the terms of the USMCA will have the 25% tariff applied only to their non-US content.

According to the FT sources, current negotiations are mainly focused on making it easier to implement the levies - for example, by simplifying rules over where the car components are sourced.

The FT report briefly pushed GM and Ford stock higher, but the move has since fizzled.