WASHINGTON (AP) — President Donald Trump will sign executive orders Tuesday to relax some of his 25% tariffs on autos and auto parts, the White House said, a significant reversal as the import taxes threatened to hurt domestic manufacturers.

Automakers and independent analyses have indicated that the tariffs could raise prices, reduce sales and make U.S. production less competitive worldwide. Trump portrayed the changes as a bridge toward automakers moving more production into the United States.

“We just wanted to help them during this little transition, short term,” Trump told reporters. “We didn’t want to penalize them. ”

Treasury Secretary Scott Bessent, who spoke earlier at a White House briefing on Tuesday, said the goal was to enable automakers to create more domestic manufacturing jobs.

“President Trump has had meetings with both domestic and foreign auto producers, and he’s committed to bringing back auto production to the U.S.,” Bessent said. “So we want to give the automakers a path to do that, quickly, efficiently and create as many jobs as possible.”

The administration will offer automakers that finish their vehicles domestically a 15% rebate this year, offsetting the cost of the tariffs. That rebate would be 10% the second year, giving the automakers some time to relocate production of parts outside the country to the United States, a senior Commerce Department official said on a call with reporters to preview the executive order. The rebates would be available to domestic and foreign companies with auto plants in the U.S.

The Commerce Department official said automakers told Trump that the additional time would enable them to ramp up the construction of new factories, after automakers warned that it would take time for them to shift their supply chains. The official said automakers would over the next month announce additional shifts for workers, new hires and plans for new facilities.

Stellantis Chairman John Elkann said in a statement that the company appreciates the president’s tariff relief measures.

“While we further assess the impact of the tariff policies on our North American operations, we look forward to our continued collaboration with the U.S. Administration to strengthen a competitive American auto industry and stimulate exports,” he said.

General Motors CEO Mary Barra said the automaker is grateful for Trump’s support of the industry, and she noted the company looks forward to conversations with the president and working with the administration.

“We believe the President’s leadership is helping level the playing field for companies like GM and allowing us to invest even more in the U.S. economy,” Barra said in a statement.

Jim Farley, president and CEO of Ford Motor Company, stressed that his company does more than its peers to manufacture domestically.

“We will continue to work closely with the administration in support of the president’s vision for a healthy and growing auto industry in America,” Farley said. “As the right policies are put in place, it will be important for the major vehicle importers to match Ford’s commitment to building in America. If every company that sells vehicles in the U.S. matched Ford’s American manufacturing ratio, 4 million more vehicles would be assembled in America each year.”