President Donald Trump is granting automakers a one-month exemption from newly imposed tariffs on Canada and Mexico, White House Press Secretary Karoline Leavitt announced.
“We are going to give a one-month exemption on any autos coming through the USMCA,” she stated. “Reciprocal tariffs will still go into effect on April 2, but at the request of the companies associated with USMCA, the president is granting them a temporary exemption so they are not at an economic disadvantage.”
The decision follows a meeting on Tuesday between administration officials and executives from the Detroit Three—Stellantis, General Motors, and Ford—where automakers pressed for relief.
On Tuesday, after the enforcement of the 25% tariffs on Canada and Mexico, auto stocks in the U.S. plummeted. General Motors lost $1.2 billion in market value, Ford dropped $900 million, and Stellantis also took a severe hit. Since the announcement, all three automakers’ shares have recovered slightly.
It remains unclear how long the tariffs will stay in place once the grace period expires. However, the temporary reprieve gives automakers additional time to adjust their production strategies and shift more investment back to the United States. At the same time, it underscores the urgency for automakers to realign their operations before the tariffs take full effect.
