Trump grants one-month exemption for U.S. automakers from new tariffs on imports from Mexico, Canada

Trump grants one-month tariff exemption for U.S. automakers from Mexico and Canada amid trade war fears.

President Donald Trump is granting a one-month exemption on his stiff new tariffs on imports from Mexico and Canada for U.S. automakers, amid fears that the trade war could harm U.S. manufacturers.

The announcement comes after Mr. Trump spoke with leaders of the “big 3” automakers, Ford, General Motors, and Stellantis on Wednesday (March 5, 2025). Mr. Trump also said he told the automaker chief executives that they should move production to the U.S from Canada and Mexico, according to White House press secretary Karoline Leavitt.

“We spoke with the big three auto dealers,” Mr. Trump said in a statement read by his spokesperson. “We are going to give a one month exemption on any autos coming through USMCA,” referencing the North American free trade agreement he renegotiated in his first term."

Mr. Trump's press secretary said the President is open to hearing about additional exemptions but Canadian Prime Minister Justin Trudeau is not willing to lift Canada’s retaliatory tariffs if Mr. Trump leaves any tariffs on Canada, a senior government official told The Associated Press. The official confirmed the stance on condition of anonymity as they were not authorized to speak publicly on the matter.

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“Both countries will continue to be in contact today,” Mr. Trudeau’s office said.

Ontario Premier Doug Ford earlier told The Associated Press the auto sector in the U.S. and Canada would last approximately 10 days before they start shutting down the assembly lines in the U.S. and in Ontario.