Automakers Get 30-Day Reprieve From Tariffs

Pause. Restart. Repeat.

President Donald Trump is in that third stage, having said Wednesday he was granting a one-month extension on the tariffs he announced earlier this week on goods from Mexico and Canada.

The exemption applies to U.S. automakers after Trump spoke with leaders of the Big Three automakers on Wednesday, White House press secretary Karoline Leavitt announced Wednesday.

According to Leavitt, Trump told the automakers they “should get on (preparing for the tariffs), start investing, start moving, shift production to the U.S., where they will pay no tariff.”

Trump has said the tariffs on the country’s largest trade partners are designed to force Canada and Mexico to help stem the flow of illegal immigrants and fentanyl to the U.S. He originally assigned them in February before pausing them. The tariffs went into effect at midnight Tuesday.

In the wake of the implementation of the tariffs earlier this week, Canadian officials have said they’re not interested in a White House overture to possibly reduce some of tariffs imposed on Tuesday.

“We are not going to back down,” Ontario Premier Doug Ford said after speaking with the Canadian prime minister, according to a report from The Associated Press. “We will not budge. Zero tariffs and that is it”

Ford told The Associated Press that the auto sector in the United States and Canada would last approximately 10 days before they start shutting down the assembly lines because of the tariffs.

“People are going to lose their jobs,” he said.

The reprieve may not last long. On April 2, Trump is set to impose broad “reciprocal” tariffs to match the taxes and subsidies that other countries charge on imports.

Leavitt said Wednesday the president is “open” to hearing requests from other industries seeking exemptions as well.

Ford officials said in a statement they “appreciate President Trump’s work to support our industry and exempt auto companies complying with USMCA.”

“Since President Trump’s successful USMCA was signed, Ford has invested billions in the United States and committed to billions more in the future to both invest in American workers and ensure all of our vehicles comply with USMCA,” the statement read. “We will continue to have a healthy and candid dialogue with the Administration to help achieve a bright future for our industry and U.S. manufacturing.”

No statement was available from either GM or Stellantis.

American Automotive Policy Council president Matt Blunt, who’s group represents Ford, GM and Stellantis in Washington, D.C., lauded the decision.

“American Automakers Ford, GM and Stellantis applaud President Trump for recognizing that vehicles and parts that meet the high U.S. and regional USMCA content requirements should be exempt from these tariffs,” Blunt said in the statement. “We look forward to working with President Trump and his administration on our shared goals of increasing U.S. automotive production and expanding exports to markets all around the world.”