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Car manufacturers have been granted a one-month extension on tariffs for imports from Mexico and Canada by the White House, announced in a last-minute policy change that has sent shockwaves through the corporate world.
White House press secretary Karoline Leavitt revealed that President Trump had engaged in discussions with Stellantis, Ford, and General Motors on this matter.
Leavitt clarified that the exemption would only apply to cars that meet the requirements outlined in the 2020 trade agreement between the US, Mexico, and Canada.
She stated, “The president is providing them with a one-month exemption to prevent them from facing economic disadvantages.”
This decision follows the market’s volatile response to the Trump administration’s imposition of 25% tariffs on imports from Canada and Mexico, along with an additional 10% tariff on China, just a day prior.
Trump’s tariffs have triggered a growing trade conflict within North America, with Canada retaliating by imposing significant tariffs on all US imports. Mexico is set to announce its response soon.
Leavitt hinted that other industries could potentially seek exemptions from these tariffs, as Trump is willing to consider additional carve-outs based on individual cases.
Despite the temporary relief for car manufacturers, Trump’s reciprocal tariffs are still scheduled to take effect on April 2 as planned.
Leavitt emphasized Trump’s commitment to bringing production back to the US, stating, “That’s the ultimate goal.”
Earlier in the day, US Commerce Secretary Howard Lutnick indicated that Trump may offer relief to certain sectors, though any such reprieve could be short-lived.
Following the announcement, shares in US automakers surged, with Ford seeing a 5% increase, General Motors up by 6%, and Stellantis’s New York-listed shares skyrocketing nearly 9%. Other automotive companies also experienced gains, with Toyota’s Wall Street-listed shares climbing by 6%.