Trump to delay Canada, Mexico auto tariffs for one month

President Trump is exempting automakers from newly imposed tariffs on Mexico and Canada for one month, the White House said Wednesday, as a temporary reprieve following pleas from industry leaders.

“We are going to give a one-month exemption on any autos coming through USMCA,” White House Press Secretary Karoline Leavitt said, referring to the trade deal Trump negotiated with Canada and Mexico in his first term. “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.”

Administration officials met Tuesday to discuss the matter with the heads of Ford Motor Co., General Motors Co. and Stellantis NV, according to some of the people, who weren’t authorized to discuss details publicly. Another meeting on possible tariff relief is set for Wednesday at the White House, people familiar with the matter said.

Representatives of Ford, GM and Stellantis declined to comment.

The White House discussion of delaying the auto tariffs was reported earlier by Bloomberg News, prompting U.S. automaker shares to jump, with Stellantis extending gains to as much as 8.1% as of 12:41 p.m. in New York. GM’s stock rose as much as 6% while Ford advanced 4.5%.

The move highlights how the Trump administration is working on multiple fronts to secure additional automobile factories in the U.S., long one of the president’s top priorities. Part of the reason for a reprieve would be to buy time for the automakers to come up with plans to move more investment and production to the U.S., some of the people said.

Detroit’s automakers have aggressively sought to halt or revise Trump’s tariffs over concerns about the potentially catastrophic effects. Carmakers and experts have warned that a rise in costs from the 25% tariffs imposed on U.S. neighbors this week could send auto prices up by thousands of dollars almost immediately and seize up supply chains.

The United Auto Workers union — which represents factory employees at GM, Ford and Stellantis — on Tuesday said it was in “active negotiations” with the Trump administration to “shape the auto tariffs in April to benefit the working class.”

The discussion came after top executives from each company spoke with officials from the Commerce Department last Thursday. Administration officials have stressed throughout the recent discussions that Trump wants automakers to return investments and vehicle production to the US, according to a person/people familiar with the matter.

Trump in a pair of social media posts on Wednesday said he had spoken to Trudeau and told the Canadian leader he was unconvinced the flow of fentanyl across their border had stopped and that he blamed the prime minister’s border policies for the situation. Trump said the “call ended in a ‘somewhat’ friendly manner,” but accused Trudeau of “trying to use this issue to stay in power.”

The delay sets up another crossroads next month, when Trump is planning a new wave of tariffs, including on auto imports specifically, beginning as soon as April 2.

U.S. car companies have pushed for an exemption for vehicles made in North America that adhere to parts-sourcing rules under USMCA, the trade deal with Canada and Mexico that Trump negotiated in his first term.

Ford CEO Jim Farley has been among the most vocal on the matter, saying last month that the tariffs would be “devastating” for American automakers and “blow a hole” in the industry.

Wingrove, Martin, Welch and Naughton write for Bloomberg.