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.

Trump's administration will alleviate some duties imposed on foreign parts in domestically manufactured cars and keep tariffs on cars made abroad from piling on top of other ones.

President Donald Trump is considering exemptions for automakers from some tariffs announced by his administration, the White House confirmed Wednesday to CNBC's Eamon Javers. The confirmation follows a Financial Times report that Trump is planning to exempt auto parts from tariffs on imports from China.