Tariffs on cars from Mexico and Canada delayed by one month

UNITED STATES - President Donald Trump has granted a one-month exemption on auto tariffs for Mexico and Canada, White House Press Secretary Karoline Leavitt confirmed.

“We spoke with the Big Three automakers and decided to grant a one-month exemption for any vehicles coming through USMCA,” Trump said in a statement read by Leavitt during a White House briefing. The companies included Stellantis, Ford, and General Motors.

“The president urged them to take action, invest, and move production to the United States, where they will pay no tariffs. That is the ultimate goal,” she added.

Although reciprocal tariffs are set to take effect on April 2, Trump granted this exemption at the request of the companies involved in USMCA to prevent them from facing an economic disadvantage.

This decision comes ahead of the administration’s plan to implement global reciprocal tariffs, which are scheduled to take effect on April 2 and will not allow for any exemptions, Leavitt told reporters.

The administration’s sudden shift on auto tariffs adds to the ongoing trade uncertainty that has marked Trump’s tenure, leaving businesses in limbo as they seek clarity on future production plans.

Following the announcement, auto stocks rose, with Ford (F) gaining 5%, Stellantis (STLA) up 8.6%, and General Motors (GM) increasing by 6.6%.