The Trump administration has granted Ford, General Motors, and Stellantis a one-month reprieve from tariffs on vehicles from Canada and Mexico, White House press secretary Carolyn Levitt said on March 5.
The decision came after automakers asked during a phone call with Donald Trump. However, retaliatory tariffs on other countries will go into effect on April 2.
“The president has given automakers extra time to avoid being put at a disadvantage,” Levitt said. The exemption applies not only to the three major automakers, but to any vehicles from Canada and Mexico that meet the terms of the USMCA trade agreement.
The move underscores Trump’s push to bring auto manufacturing back to the U.S. The U.S. automakers have previously criticized the 25% tariffs, warning that they would immediately raise prices due to complex supply chains.
On March 4, Trump already imposed 25% tariffs on Canada and Mexico, as well as 10% on China, justifying them by the fight against fentanyl smuggling. However, experts note that Canada's role in this is minimal, while the main supplier is Mexico.
After the tariffs were announced, the US stock market fell sharply: the Dow Jones lost 1.55% (670 points).