President Donald Trump announced Friday that domestic automakers will receive extended relief from tariffs on auto parts, prolonging a previously short-term rebate through 2030.

The proclamation also formalized a 25% import tax on medium and heavy-duty trucks, effective Nov. 1. The measures aim to boost U.S. manufacturing while easing the higher costs on parts and raw materials caused by Trump’s import tariffs.

Originally introduced in April, the rebate was scheduled to phase out by 2027. Trump had described it as short-term assistance “during this little transition,” anticipating that automakers would bring production lines back to the U.S.

Senior administration officials, speaking anonymously, said the extension follows discussions with the auto industry, with the goal of expanding domestic production and improving competitiveness. The updated rebate offers 3.75% of the sales price on domestically assembled vehicles, calculated from the 25% tariff on parts that represent roughly 15% of a vehicle’s cost. Truck and engine manufacturers are now included in the rebate.

Trump had previously announced new tariffs on imported trucks via social media on Oct. 6, while buses will face a 10% tariff. Imports covered under the U.S.-Mexico-Canada Agreement (USMCA) are exempt. The pact, effective since 2020, is scheduled for renegotiation next year.

The moves come as U.S. consumers face record-high vehicle prices. Kelley Blue Book reported that the average new car buyer spent $50,080 in September, up 3.6% from last year.