The Trump administration is planning to blunt the sweeping automotive tariffs imposed on foreign-made vehicles and auto parts, as executives say the duties have changed the fundamentals of the industry.

The Wall Street Journal is reporting that automakers paying Trump’s automotive tariffs also won’t be charged for the administration’s steel and aluminum tariffs.

The paper reported that the changes would be retroactive, meaning that automakers could be reimbursed for any tariffs already paid.

Earlier this month, Trump imposed a 25% tariff on finished foreign-made cars.

In addition, the 25% tariff on foreign auto parts, which would have gone into effect Saturday, will also be modified. Auto manufacturers will be reimbursed for an amount equal to 3.75% of the value of a U.S.-made car for one year.

The reimbursement would fall to 2.5% of the car’s value next year, and then be phased out altogether.

The changes came after extensive lobbying by the auto industry, and are meant to give time for auto companies to move supply chains for parts to the U.S.

Trump imposed the tariffs for several reasons, such as inspiring manufacturers to move factories and supply chains to the U.S. Hyundai last month announced it will invest $21 billion on its U.S. manufacturing operations.

The move to modify the tariffs comes as auto industry figures have pointed to the disruption caused by the duties.

Mercedes-Benz chief executive Ola Källenius said yesterday that the tariffs, along with the move toward electric vehicles, have created a challenging atmosphere for the industry.

The Mercedes chief was among other automotive executives who met Trump last week to discuss tariffs, according to GBN.

“I don’t think I’ve experienced a higher level of complexity in my 32 years in the business,” Källenius said at the Shanghai auto show.

“We’re also dependent on the ability to import and export in all directions. If restrictions, tariffs, or other trade barriers arise, that is not good for general global trade and would affect us as well.”

Despite selling 14% of its cars in the U.S. last year, Källenius said the company remains committed to the American market “in the long term.”

Reuters is reporting that Hyundai, Toyota and others sent a letter to Commerce Secretary Howard Lutnick saying the auto parts tariffs would “scramble the global automotive supply chain and set off a domino effect that will lead to higher auto prices for consumers, lower sales at dealerships and will make servicing and repairing vehicles both more expensive and less predictable.”

The letter pointed out that many auto suppliers would face production stoppages, layoffs and bankruptcy.