The White House declared on Wednesday a one-month North American tariff exemption for automakers General Motors, Ford Motor, and Stellantis.
Automakers requested Trump to waive 25% tariffs on vehicles from Mexico and Canada that adhere to the United States-Mexico-Canada Agreement’s rules of origin (USMCA). After a call with President Trump, the three automakers received a reprieve from tariffs.
At Wednesday’s press briefing, White House press secretary Karoline Leavitt revealed that the president has granted a one-month exemption from tariffs for autos coming through USMCA, following a request from Stellantis, Ford, and GM. Reciprocal tariffs will still take effect on April 2nd. Leavitt affirmed that the companies initiated the call, and the president consented to their request.
Leavitt underlined that the delay is temporary and automakers will face tariffs again in April when Trump’s reciprocal tariffs take effect. Trump urged automakers to invest and move production to the United States, where they would not have to pay tariffs, she added.
Earlier this week, the American Automotive Policy Council contended that vehicles and parts meeting USMCA requirements should be exempted from the increased tariffs.
The reprieve for automakers followed the imposition of 25% tariffs on imports from Mexico and Canada, where many cars are manufactured.
Reports indicate that vehicle costs of certain models could increase by 25%, causing an almost immediate negative impact on vehicle pricing and availability. As automakers cannot bear the full price without impacting their margins, it is anticipated that most of these costs will be transferred to consumers.
The American Automotive Policy Council praised Trump’s decision to exclude vehicles and parts meeting the high US and regional USMCA content requirements from tariffs.
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