Trump grants 1-month exemption for U.S. automakers from new tariffs on imports from Mexico, Canada

The Associated Press

· Posted: Mar 05, 2025 3:17 PM EST | Last Updated: March 6

U.S. President Donald Trump is granting a one-month exemption connected his stiff caller tariffs connected imports from Mexico and Canada for U.S. automakers, arsenic worries persist that the recently launched trade war could crush home manufacturing.

The intermission comes aft Trump spoke with leaders of the "Big Three" automakers: Ford, General Motors and Stellantis, connected Wednesday, according to White House property caput Karoline Leavitt.

Asked if 30 days was capable for the car assemblage to hole for the caller taxes, Leavitt said Trump was blunt with the automakers seeking an exemption: "He told them that they should get connected it, commencement investing, commencement moving, displacement accumulation present to the United States of America wherever they volition wage nary tariff."

Trump had agelong promised to enforce tariffs, but his opening weeks successful the White House progressive assertive threats and astonishment suspensions, leaving allies unclear astatine what the U.S. president is really trying to achieve.

Based disconnected assorted Trump medication statements, the tariffs connected Canada, Mexico and China imposed connected Tuesday are astir stopping amerciable immigration, blocking fentanyl smuggling, closing the commercialized gap, balancing the national fund and different nations showing much respect for Trump.

All of that has near Canada, a long-standing ally, determined to basal up against Trump with their ain retaliatory tariffs, rejecting a White House overture to perchance trim immoderate of tariffs imposed connected Tuesday.

"We are not going to backmost down," Ontario Premier Doug Ford said aft speaking with the Canadian premier minister. "We volition not budge. Zero tariffs and that is it."

Ford told The Associated Press that the car assemblage successful the United States and Canada would past astir 10 days earlier they commencement shutting down the assembly lines due to the fact that of the tariffs.

"People are going to suffer their jobs," helium said.

After the White House announced the 1 period reprieve, shares of large U.S., Asian and European automakers jumped arsenic overmuch arsenic six per cent.

But pausing the 25 per cent taxes connected autos and car parts traded done the North American trade pact USMCA would lone hold a broader reckoning to instrumentality spot connected April 2, erstwhile Trump is acceptable to enforce wide "reciprocal" tariffs to lucifer the taxes and subsidies that different countries complaint connected imports.

The U.S. automaker Ford said successful a statement: "We volition proceed to person a steadfast and candid dialog with the Administration to assistance execute a agleam aboriginal for our manufacture and U.S. manufacturing."

GM successful a connection thanked Trump "for his approach, which enables American automakers similar GM to vie and put domestically."

Stellantis besides thanked Trump for the one-month exemption, saying it "strongly" supported "his determination to alteration the American automotive assemblage to thrive."

Other industries are besides apt to question exemptions from the import taxes.

"A fig of industries person reached retired to america to inquire america for exemptions to the tariffs," Vice President JD Vance said Wednesday.

The White House repeatedly insisted that it would not assistance exemptions and the abrupt turnaround reflects the economical and governmental problems being created by Trump's day-old tariffs. While the Republican president sees them arsenic enriching the United States, his plans to taxation imports person alienated allies and caused anxiousness astir slower economical maturation and accelerating inflation.

The U.S. president engaged successful a telephone telephone connected Wednesday with Canadian Prime Minister Justin Trudeau, arsenic U.S. Commerce Secretary Howard Lutnick had suggested that the medication was looking to conscionable Canada and Mexico "in the middle."

But Trudeau refused to assistance Canada's retaliatory tariffs truthful agelong arsenic Trump continues with his caller taxes connected imports from Canada, a elder authorities authoritative told The Associated Press. The authoritative confirmed the stance connected information of anonymity arsenic they were not authorized to talk publically connected the matter.

The imaginable of a commercialized warfare appears to beryllium an ongoing diagnostic of the Trump administration. In summation to his upcoming reciprocal tariffs that could onslaught the European Union, India, Brazil, South Korea, Canada and Mexico, Trump wants to taxation imports of machine chips, pharmaceutical drugs and autos. He besides closed exemptions connected his 2018 alloy and aluminum tariffs and is investigating tariffs on copper as well.

Tariffs are taxes paid by importers successful the countries receiving the goods, truthful the outgo could mostly beryllium passed on to U.S. consumers and businesses successful the signifier of higher prices. In his Tuesday nighttime code to a associated league of Congress, Trump tried to minimize the fiscal symptom arsenic a " little disturbance."

"It whitethorn beryllium a small spot of an accommodation period," helium said aft claiming that farmers would payment from reciprocal tariffs connected countries that person tariffs connected U.S. exports. "You person to carnivore with maine again and this volition beryllium adjacent better."

Trump has predicted that tariffs volition pb to greater concern wrong the U.S., creating mill jobs and boosting maturation successful the agelong term.

On Tuesday, Trump enactment 25 per cent taxes connected imports from Mexico and Canada, taxing Canadian vigor products specified arsenic lipid and energy astatine a little 10 per cent rate. The president besides doubled the 10 per cent tariff helium placed connected China to 20 per cent.

The medication has claimed that the tariffs are astir stopping the smuggling of drugs specified arsenic fentanyl, with aides asserting that this is astir a "drug war" alternatively than a "trade war." U.S. customs agents seized just 19.5 kilograms (43 pounds) of fentanyl astatine the bluish borderline the past fiscal year.

Trudeau said connected Tuesday that his country would plaster tariffs on implicit $100 cardinal US of American goods implicit the people of 21 days, stressing that the United States had abandoned a long-standing friendship.

"Today, the United States launched a commercialized warfare against Canada, their closest spouse and ally, their closest friend. At the aforesaid time, they are talking astir moving positively with Russia, appeasing Vladimir Putin, a lying, murderous dictator. Make that marque sense," Trudeau said connected Tuesday.

Mexico indicated it would denote its ain countermeasures connected Sunday.