Trump agrees to grant a one-month tariff exemption for some North American-made cars
U.S. President Trump agreed to delay for a month the imposition of tariffs on certain North American-produced vehicles, a move that will benefit cars meeting the origin rules of the 2020 United States-Mexico-Canada Agreement (USMCA). The White House stated that all qualifying imported vehicles will be exempt, although reciprocal tariffs will still take effect on April 2. Automakers have committed to increasing their investments in the U.S. but hope the government will provide certainty regarding tariffs and environmental policies. Ford Motor and General Motors saw their stock prices rise nearly 4% and 5%, respectively
Reuters Washington, March 5 - The White House announced on Wednesday that U.S. President Trump agreed to delay for a month the imposition of tariffs on certain automobiles produced in North America after a phone call with the chairmen of General Motors (GM.N), Ford Motor (F.N), and Stellantis.
These automakers had previously urged Trump to exclude cars that meet the origin rules of the 2020 United States-Mexico-Canada Agreement (USMCA) from the 25% tariffs imposed on goods from Mexico and Canada. This move would benefit U.S. automakers and other foreign automakers that comply with the regulations.
"We will grant a one-month exemption for all imported cars that comply with the USMCA... so they won't be at a disadvantage," White House spokesperson Levitt told reporters. "The reciprocal tariffs will still take effect on April 2."
Sources added that automakers have committed to increasing their automotive investments in the U.S., but they hope the government will provide certainty regarding tariffs and environmental policies, noting that Trump may impose additional tariffs on April 2, which could have a significant impact on U.S. auto production.
The North American automotive supply chain is highly integrated, with parts crossing borders between the U.S., Canada, and Mexico at different stages of automobile production, which could expose automakers to multiple tariffs.
Automakers declined to comment. Stellantis told dealers it is willing to expand its investments in the U.S. The White House did not immediately comment. Ford Motor's stock rose nearly 4% on Wednesday, while General Motors rose 5%
