Trump administration delays tariffs on Canada, Mexico cars

US delays levies on Canadian and Mexican automotive imports for a month

US delays levies on Canadian and Mexican automotive imports for a month
US delays levies on Canadian and Mexican automotive imports for a month

President Donald Trump has granted an exemption on auto tariffs on Mexico and Canada for one month, White House Press Secretary Karoline Leavitt announced Wednesday, issuing a major, albeit temporary, concession on a key part of his administration’s economic plan.

According to CNN, after speaking with Ford, General Motors and Stellantis, Trump said he agreed to a reprieve to ensure America’s Big Three automakers aren’t harmed financially. But the tariffs are not off – not yet, anyway.

“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 at the daily press briefing. (USMCA refers to the free-trade agreement that was signed during the first Trump administration among the US, Mexico and Canada.)

All the other across-the-board 25% tariffs on Mexico and Canada remain in effect. But Leavitt also said Trump would remain open to other tariff exemptions – days after saying there would be none. Stocks rallied on the news Wednesday.

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