In response to a question from the press about tariffs, White House Press Secretary Karoline Leavitt announced on Wednesday that President Donald Trump had granted a one-month exemption on new tariffs for GM, Ford, and Stellantis and other U.S. automakers that comply with USMCA.
“We spoke with the Big 3 [automakers]. We are going to give a one-month exemption on any autos coming through USMCA,” Leavitt announced, referring to the United States-Mexico-Canada Agreement trade deal. “Reciprocal tariffs will still go into effect on April 2nd, 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…The three companies that [Trump] spoke to are Stellantis, Ford, and General Motors. They requested the call, they made the ask, and the president is happy to do [the one-month exemption].”
It was initially unclear whether the tariff exemption applied to imported parts as well as fully assembled cars, but further information clarified that it covers all goods that comply with USMCA agreement rules. As examples, Chevy Equinox crossovers built at San Luis Potosà Assembly in Mexico and imported to the U.S. will be temporarily exempt from the new 25-percent tariff on goods coming from Canada and Mexico, while Corvette transmissions built at the St. Catharines plant from Ontario to Bowling Green, Kentucky also won’t be taxed for the time being.
This news comes a day before President Donald Trump is scheduled to speak with Mexican President Claudia Sheinbaum. Sheinbaum previously announced that a retaliatory tariff package would be unveiled on March 9th, but that plan could change depending on how tomorrow’s discussion between the North American leaders goes.
Canadian Prime Minister Justin Trudeau responded to the new tariffs from the U.S. by imposing 25 percent duties on $30 billion worth of imports from the States. Tariffs on another $125 billion in goods, including cars, are scheduled to go into effect on March 25th, which will coincide with this new exemption for American automakers. A significant portion of new cars sold in Canada are imported from the U.S. – approximately half, according to some estimates – so this would likely have a major impact on the cost of cars in Canada if implemented.
