US President Donald Trump has granted a one-month exemption from his strict new tariffs on imports from Mexico and Canada for US automakers, while calling on them to move their production to the United States. More exemptions are not ruled out.
“We are going to give them a one-month exemption for vehicles that come under the [US-Mexico-Canada Agreement] T-MEC,” so that US manufacturers do not suffer economic disadvantages, explained White House spokeswoman Karoline Leavitt.
The exemption comes after Trump spoke with the leaders of the three major automakers, Ford, General Motors and Stellantis, Leavitt detailed. When asked why the one-month exemption, she first said it is because on April 2 the “reciprocal” tariffs will come into effect to match taxes and subsidies that other countries charge on imports from the US.
Asked if he expects automakers to change their production in a month, Leavitt said Trump was blunt: “He told them they should get going, start investing, start moving, move production to the United States, where they will not pay tariffs.”
The three automakers employ some 55,000 people in Mexico in 15 factories. According to data from the Mexican Association of the Automotive Industry (AMIA), in 2024 General Motors produced 889,000 vehicles in Mexico, while Stellantis and Ford manufactured 419,000 and 387,000, respectively.
US Secretary of Commerce Howard Lutnik insisted that there will be no pause to the 25% tariffs for Mexico and Canada, and that Trump’s decision is due to the fact that both nations must do more to stop not only migration, where he recognizes progress, but also the flow of fentanyl. According to Lutnick, the Trump administration is making adjustments and some sectors could be exempted from tariffs or receive some relief.
“The president is open to the possibility of other exemptions,” she said.
“We know that prices are going up for Americans,” she acknowledged, citing eggs in particular, which remain a cause for concern.
Agriculture Secretary Brooke Rollins said Trump is considering exempting certain agricultural products from tariffs. Rollins said everything is on the table and she is hopeful that Trump will choose to offer relief to the agricultural sector: “As far as specific exemptions and exceptions for the agricultural industry, perhaps for potash and fertilizers, that is to be determined… We trust the president’s leadership on this issue. I know he is very focused on these communities.”
Rollins met with Trump and other economic officials to discuss the way forward. Canada, which has already filed a formal complaint with the World Trade Organization (WTO) in response to the tariffs and imposed its own in retaliation, rejected the White House’s offer to reduce only some of the duties. “We’re not going to back down,” said Ontario Premier Doug Ford after speaking with Canadian Prime Minister Justin Trudeau. “We’re not going to budge. Zero tariffs and that’s it.”
The automaker Ford said it would take about 10 days before the sector in the United States and Canada begins to close assembly lines due to the high tariffs: “People are going to lose their jobs,” it said.
After the White House announced the one-month extension, shares of the major automakers in the United States, Asia and Europe rose by up to 6%, but pausing the 25% tariffs on cars sold under the Mexico-United States-Canada Agreement would only delay the broader adjustment on April 2.
“We will continue to have a healthy and candid dialogue with the administration to help achieve a bright future for our industry and American manufacturing,” Ford said.
General Motors thanked Trump in a statement “for his approach, which allows American automakers like GM to compete and invest domestically.”
Other industries are also likely to seek exemptions from the tariffs. “A number of industries have reached out to us to ask for exemptions from the tariffs,” said Vice President JD Vance. Agencies
Source: eluniversal
