White House Announces 1-Month Delay of Tariffs on Cars From Canada and Mexico

Cars from Canada and Mexico imported into the United States through the U.S.-Mexico-Canada Agreement (USMCA) will be exempted for one month from the tariffs imposed on the countries Tuesday (March 4).

The move by the White House followed a request from three automakers — Ford Motor, General Motors and Stellantis — but will apply to all cars that comply with the USMCA, The Wall Street Journal reported Wednesday (March 5).

The three automakers will work with the White House “on our shared goals of increasing U.S. automotive production and expanding exports,” said the American Automotive Policy Council, a group that represents the companies, per the report.

President Donald Trump will consider similar exemptions in other cases in which tariffs cause economic disruptions, White House Press Secretary Karoline Leavitt said Wednesday, according to the report. Leavitt didn’t specify sectors that might be considered.

Trump is unlikely to consider exemptions to the reciprocal tariffs that are set to be implemented April 2, the report said. Those tariffs will charge other nations the same tariffs that they impose on U.S. goods.

Administration officials were discussing exemptions to the tariffs imposed on Canada and Mexico earlier Wednesday, Bloomberg reported.

Secretary of Commerce Howard Lutnick told Bloomberg that there will be tariffs but “there will be some categories left out; it could well be autos, could be others as well.”

The tariffs that went into effect Tuesday against Canada and Mexico amount to 25%, PYMNTS reported Tuesday. In addition, imports from China were slapped with a 20% levy.

Two of the trading partners immediately responded with tariffs of their own, with China placing a 15% duty on several classes of U.S. exports and Canada imposing levies on $107 billion of goods coming from the U.S. Mexico said it would announce its plans later this week.

It was reported Tuesday that Mexico will announce the details of its plans for retaliatory tariffs on U.S. goods Sunday (March 9), after the country’s president, Claudia Sheinbaum, speaks on a call planned for Thursday (March 6).