The Trump administration is scaling back auto tariffs that are set to begin on Saturday, White House and Commerce Department officials said Tuesday.

Foreign auto parts will be spared from a double hit – President Trump's auto tariffs and the import taxes he previously imposed on foreign metals. Trump will instead be charged the highest available rate per product, The Hill news outlet reported.

In the first year of the tariffs, automakers will be allowed to apply for 15% price offsets, then 10% offsets in the second year, in an effort to encourage increased domestic production of automobiles.

The offsets will phase out in the third year, when officials expect auto supply chains to be sufficiently shored up. The 25% import tax on auto parts will be fully levied after the end of the second year.

White House and Commerce Department officials told reporters in a call on Tuesday that the 15% and 10% reductions would be applied to the manufacturer’s recommended car price. The reductions were made with input from the auto industry.

Officials walked through the calculations, multiplying the 15% and 10% offsets to the 25% auto part tariff rate, resulting in effective tariff reductions of 3.75% and 2.5%. They also said that the average value of the offset would be around $1,500 per vehicle.

When the auto tariffs were first announced last month, the United Auto Workers labor union supported them, saying they “signal a return to policies that prioritize the workers who build this country – rather than the greed of ruthless corporations.”