Trump delays car tariffs from Mexico, Canada by a month
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More news: President Donald Trump has granted a one-month exemption on auto tariffs for Mexico and Canada, White House Press Secretary Karoline Leavitt confirmed.
What they said: “We spoke with the Big Three auto dealers. We are going to give a one-month exemption on any autos coming through USMCA,” Trump said in a statement read by Leavitt.
The automakers included Stellantis, Ford and General Motors. Leavitt added that Trump told them to “start investing, start moving, shift production here to the United States of America, where they will pay no tariff,” she said.
“Reciprocal tariffs will still go into effect on April 2. But 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 added.
The extension comes ahead of Trump’s plan to impose reciprocal tariffs across the globe on 2 April, which will not allow for any exemptions.
Trump weighs one-month auto tariff delay for Mexico, Canada, says Bloomberg
The news: The Trump administration is considering a one-month delay on newly imposed 25% tariffs on vehicles from Mexico and Canada, sources familiar with the matter told Bloomberg.
Trump held a call Tuesday with the CEOs of General Motors, Ford, and Stellantis to discuss the potential delay, Bloomberg and Reuters reported, citing anonymous sources.
Earlier, commerce secretary Howard Lutnick indicated that the auto sector and others complying with the United States-Mexico-Canada Agreement (USMCA) could receive relief, with an announcement expected Wednesday (Thursday AEDT).
Bloomberg reported that part of the reason for a potential reprieve was to buy time for automakers to move more investment and production to the US, a key Trump demand.
Officials are set to meet again on Wednesday local time to discuss tariff relief, the news agency added.
The context: Automakers have warned the tariffs could increase car prices by up to USD12,000 and disrupt supply chains. Jeep-maker Stellantis told dealers this week the tariffs would hurt its competitiveness, and that it was prepared to expand US investment but that it needs time to make changes.
Trump, in a congressional address, said the tariffs would lead to growth for the US auto industry while acknowledging “a little disturbance.”
More tariffs, which the Trump administration has called reciprocal, are set to take effect in April.
The numbers: Following the reports of the possible delay, Stellantis stock rose 8.1%, GM was up 6% and Ford had gained 4.5%.
