In a bird’s-eye view, the brand new Subaru car sits in a storage lot in Auto Warehouse Co., Richmond, California on March 4, 2025.
Justin Sullivan | Getty Images
The White House announced Wednesday that tariff exemptions to automakers will last for a month after the president Donald Trump Speech a day ago General Motors,,,,, Ford electric motor and Stellantis.
Automakers have urged Trump to exempt vehicles compliant with the U.S.-Mexico Agreement’s rules on origin from 25% tariffs on Mexico and Canada.
“The reciprocity tariffs will still take effect on April 2, but the president is giving them a month’s exemption, so they are not at a financial disadvantage,” press secretary Karoline Leavitt said on behalf of Trump.
Leavitt confirmed that the automaker requested a Tuesday call with Trump, who mentioned it in a speech to Congress later that day.
The White House said it allowed tariffs on automakers to be delayed by one month, whose cars meet USMCA tax rates, which were negotiated during Trump’s first term.
Stocks of the automakers rose 4% to 9% on Wednesday afternoon.
It is not clear whether the vehicle will be exempted only from taxes, or will also include auto parts.
The exemption allows the White House and the automotive industry to make other preparations and discussions on tariffs. It is also more consistent with tariffs on potential vehicles traveling from imports outside North America.
Trump has previously said the tariffs will be confirmed on April 2 to boost automakers’ investment in more vehicle production in the United States.
The U.S. Automotive Policy Council, which represents Ford, General Motors and Stralandis (all of which are severely affected by tariffs), believed earlier this week that vehicles and parts that meet USMCA requirements should be exempt from increased tariffs.
“Our U.S. automakers invest billions in the U.S. to meet these requirements and should not damage their competitiveness due to tariffs, which will increase the cost of building vehicles for the U.S. labor, while our competitors benefit greatly from competitors outside North America from the easy access to our housing market,” former Missouri Gov. Matt Matt Blunt, A” Monday night’s statement.
S&P Global Mobility reports that the average North American automaker has an average of 63,900 light passenger cars per day. Most of them are assembled in the United States, followed by 27% in Mexico and 8% in Canada.
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