The U.S. economy contracted for the first time in three years in the first quarter, swamped by a flood of imports as businesses raced to avoid higher costs from tariffs and underscoring the disruptive nature of President Donald Trump's often chaotic trade policy.

WASHINGTON (Reuters) -U.S. President Donald Trump will sign an order giving automakers building vehicles in the U.S. relief from part of his new 25% vehicle tariffs to allow them time to bring parts supply chains back home, Commerce Secretary Howard Lutnick said on Tuesday.

Commerce Secretary Howard Lutnick appeared to confirm reporting on​ Monday evening that a deal has been reached with automakers to​ ease tariffs.