While the US is pushing ahead with its 25% tariffs on goods coming into the country from its neighbours Mexico and Canada, President Donald Trump is now saying that cars coming in from those markets with be exempt…. for now.
The delay in tariffs for one month on some vehicles built in North America comes after Trump got on a call with the CEOs of General Motors and Ford, and the chair of Stellantis, the White House said Wednesday.
The automakers had urged Trump to waive 25% tariffs on Mexico and Canada on vehicles that comply with the 2020 U.S.-Mexico-Canada Agreement’s rules of origin.
The move will benefit U.S. automakers and other foreign automakers that are in compliance.
“We are going to give a one-month exemption on any autos coming through USMCA… so they are not at a disadvantage,” White House press secretary Karoline Leavitt told reporters.
“Reciprocal tariffs will still go into effect on April 2.”
Automakers have offered to boost U.S. auto investments but want certainty about tariff and environmental policies, the sources added, noting that Trump could on April 2 impose additional tariffs that could drastically impact U.S. auto production.
The North American auto supply chain is highly integrated through the United States, Canada and Mexico, as parts cross the border in various stages of manufacturing that could expose car companies to multiple tariffs.
GM CEO Mary Barra, Ford CEO Jim Farley along with Ford executive chairman Bill Ford and Stellantis chair John Elkann took part in the call on Tuesday.
The automakers declined to comment.
Stellantis told dealers it was willing to expand U.S. investment. The White House did not immediately comment. Ford shares rose nearly 4% on Wednesday, while GM was up 5%.
