In a move to ease the economic strain on U.S. automakers, President Donald Trump has granted a one-month exemption on newly imposed tariffs on imports from Mexico and Canada.
The decision comes amid growing concerns that the trade war could severely impact the auto industry.
“We spoke with the Big Three auto dealers. We are going to give a one-month exemption on any autos coming through USMCA,” White House Press Secretary Karoline Leavitt said. “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.”
Canada and Mexico strongly opposed the newly imposed U.S. auto tariffs. Canadian Prime Minister Justin Trudeau described the tariffs as a betrayal of the friendship between the two nations. He stated that “Canada wants the tariffs removed” and emphasized that nothing less than their removal is acceptable.
Mexican officials have also expressed their concerns and are expected to announce their response soon. These tariffs are anticipated to significantly impact the Mexican economy and the North American auto industry, which relies heavily on cross-border supply chains.
Commerce Secretary Howard Lutnick hinted at further tariff relief: “It will not eliminate the tariffs, but it might modify the tariffs somewhat.”
The temporary relief aims to give automakers time to adjust their supply chains and avoid major disruptions.
[…] to Lutnick, American auto companies, which were originally granted tariff leniency Wednesday, were the leaders in pushing the tariffs back again. The Trump tariffs have been postponed multiple […]