President Donald Trump has granted a one-month exemption on auto tariffs for Mexico and Canada, White House Press Secretary Karoline Leavitt announced Wednesday, offering a temporary concession amid his administration’s push to revamp American manufacturing.
The move follows discussions with major U.S. automakers, including Ford, General Motors, and Stellantis, who warned of potential financial strain. “At the request of the companies associated with USMCA, the president is giving them an exemption for one month so they’re not at an economic disadvantage,” Leavitt said, referring to the U.S.-Mexico-Canada Agreement.
Despite the temporary relief, Trump remains committed to reshoring auto production. “He told them they should get on it, start investing, start moving, shift production here to the United States of America, where they will pay no tariff. That’s the ultimate goal,” Leavitt added.
Automakers responded cautiously. Ford and GM expressed appreciation for the exemption while emphasizing their continued investment in U.S. manufacturing. Meanwhile, Canadian officials, including Ontario Premier Doug Ford, rejected any form of tariffs, insisting on “zero tariffs and no compromises.”
The exemption comes ahead of Trump’s planned announcement of reciprocal tariffs on April 2, which, according to Leavitt, will not include any exemptions. Auto industry leaders warn that without a long-term solution, tariffs could drive up vehicle costs and disrupt North America’s integrated supply chain.
Markets reacted positively, with major automaker stocks surging on the news.
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