The United States (U.S.) President Donald Trump has granted carmakers a one-month reprieve on import tariffs on products from Mexico and Canada.
The White House press secretary Karoline Leavitt announced the exemption on Wednesday and said Trump had met with chief representatives from the “Big Three” – Stellantis, Ford and General Motors.
Automakers will need to comply with the United States-Mexico-Canada Agreement (USMCA) in order for the 25% tariff to be lifted, which intends to ensure “a more level playing field for American workers.”
Leavitt said:
“We spoke with the Big Three. We are going to give a one-month exemption on any autos coming through USMCA. 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,”
CNBC reported that GM’s CEO Mary Barra, Stellantis Chair John Elkann and Ford’s CEO Jim Farley and Chair Bill Ford, were all involved in meeting with the President on the matter.
The advice Trump gave for automakers to action in the next 30 days is to “start investing, start moving production here to the United States where they will pay no tariff. That’s the ultimate goal,” stated Leavitt.
This isn’t the first time Trump has put a pause on these tariffs. Last month the President agreed with Canadian Prime Minister Justin Trudeau to halt the tariffs for at least 30 days.
Rumours of significant cost increases on manufacturing and new vehicle pricing have been circulating, with analysts predicting new-car prices to rise by $1000 to $9000, according to Detroit Free Press.
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