US President Donald Trump has taken action to ease the impact of new tariffs on the car making industry, which had sparked warnings about higher prices and the potential for significant hits to sales and production.
The change will allow companies with US factories to reduce the amount they pay in import taxes on foreign parts, using a formula tied to how many cars they sell and the price.
The provision is intended to provide relief to businesses for two years as they rework their supply chains, the White House said.
Officials also moved to shield car firms from facing mounting tariffs on the same items.