President Donald Trump will exempt automakers from proposed tariffs on Mexico and Canada for one month after pleas from industry leaders.
“We are going to give a one month exemption on any autos coming through USMCA,” White House press secretary Karoline Leavitt said during a press conference on Wednesday.
“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 are not at an economic disadvantage,” she continued.
Bloomberg wrote:
Detroit’s automakers have aggressively sought to halt or revise President Donald Trump’s tariffs over concerns about the potentially catastrophic effects. Carmakers and experts have warned that a rise in costs from the 25% tariffs imposed on US neighbors this week could send auto prices up by thousands of dollars almost immediately and seize up supply chains.
The United Auto Workers union — which represents factory employees at GM, Ford and Stellantis — on Tuesday said it was in “active negotiations” with the Trump administration to “shape the auto tariffs in April to benefit the working class.”
Top executives spoke with officials from the Commerce Department last Thursday; administration officials expressed their desire to bring investment and auto production to the United States.
Trump, on his social media platform Truth Social, said he spoke to Canadian leader Justin Trudeau, explaining that the “call ended in a ‘somewhat’ friendly manner,” but said the Canadian leader was “trying to use this issue to stay in power.”
Another set of tariffs could begin on April 2.
Ford CEO Jim Farley said that the tariffs could be “devastating” for American automakers and “blow a hole” in the industry.
The news was broken on the Larry Kudlow Show on Fox Business Network.
Sean Moran is a policy reporter for Breitbart News. Follow him on X @SeanMoran3.
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