Trump Grants Big-3 Automakers Temporary Tariff Relief
U.S. Delays Some Auto Tariffs for North American-Built Vehicles
President Donald Trump has agreed to delay some automotive tariffs for one month following discussions with top executives from the Detroit Big-3 automakers. The decision aims to ease pressure on General Motors (GM), Ford Motor Company, and Stellantis, whose leaders pushed for relief on 25% tariffs applied to vehicles imported from Mexico and Canada.
The call included GM CEO Mary Barra, Ford CEO Jim Farley, Stellantis Chairman John Elkann, and Ford Executive Chairman Bill Ford. They urged Trump to waive tariffs on vehicles that comply with the 2020 U.S.-Mexico-Canada Agreement (USMCA) rules of origin, which dictate where parts and materials must come from to qualify for trade benefits.
White House press secretary Karoline Leavitt confirmed the temporary exemption, stating, “We are going to give a one-month exemption on any autos coming through USMCA… so they are not at a disadvantage.” Despite the delay, reciprocal tariffs are still set to take effect on April 2.
The North American auto supply chain is deeply integrated, with parts crossing borders multiple times during the manufacturing process. Without the exemption, automakers risk exposure to multiple tariffs, adding costs and disrupting production.
Although the automakers declined to comment, Stellantis expressed a willingness to expand U.S. investments but stressed the need for time to adjust operations without negatively impacting customers and business. Stellantis also noted that making major changes to their U.S. manufacturing footprint would require careful planning and execution to avoid disruptions.
Investor confidence rose following the announcement, with Ford shares climbing nearly 4%, GM shares rising 5%, and Stellantis up nearly 9.25% on Wednesday.
As the industry looks ahead to the April 2 deadline, automakers continue to advocate for clear and consistent policies on tariffs and environmental regulations to maintain growth and stability.
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