President Donald Trump has granted an exemption on auto tariffs on Mexico and Canada for one month, White House Press Secretary Karoline Leavitt confirmed Wednesday.
Gatekeepers News reports that Trump, in a statement Leavitt read in a White House briefing, said “We spoke with the Big Three auto dealers. We are going to give a one-month exemption on any autos coming through USMCA.”
Those dealers included Stellantis, Ford and General Motors, which requested the call, she 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’re not at an economic disadvantage.”
Leavitt said the companies should use that month to work toward the president’s goals.
“He told them they should get on it, start investing, start moving, shift production here to the United States of America, where they will pay no tariff. That’s the ultimate goal,” she added.
But Canada is not cheering the one-month auto tariff reprieve, even though US Commerce Department data shows cars are Canada’s second-biggest export to the US.
Ontario Premier Doug Ford said he and Canadian Prime Minister Justin Trudeau are unwilling to accept any tariffs on their country’s goods. “We’re on the same page, zero tariffs and we are not going to budge,” he told reporters in a briefing Wednesday.
Trump’s decision to grant the extension comes ahead of his plan for reciprocal tariffs across the globe, which are set to be announced on April 2. Unlike the tariffs on Mexican and Canadian goods, Trump won’t consider for any exemptions on the pending reciprocal tariffs, Leavitt told reporters.
They also could come on top of the 25% tariffs still in place on other Canadian and Mexican goods. For instance, last week on a Fox News interview, Commerce Secretary Howard Lutnick called out Canada’s 5% national sales tax when discussing potential reciprocal tariffs Trump could be eyeing.
The administration’s swift about-face on auto tariffs adds to the trade chaos that has unfolded since Trump took office. Leavitt noted the president is “open to hearing about additional exemptions.”
