Trump grants one-month tariff exemption for major automakers
President Donald Trump granted a one-month tariff exemption to any autos coming from Mexico and Canada for Ford, General Motors, and Stellantis.
- President Trump announced new tariffs on auto imports.
- Economists warn that tariffs could lead to a trade war and higher prices for consumers.
President Donald Trump announced new tariffs on auto imports at the White House on Wednesday.
White House Press Secretary Karoline Leavitt announced that Trump had added the event at a press briefing Wednesday afternoon. It follows Trump’s saying on Monday that he would be announcing new tariffs involving auto imports “over the next few days, probably.”
Trump had already decoupled auto imports from a series of reciprocal tariffs he is widely expected to announce next Wednesday, on April 2, a day he has referred to as “liberation day.” As part of those tariffs, he is expected to raise import tariffs to match those levied against U.S. exports to those countries.
Auto executives, including those from General Motors, Ford and Stellantis, have been working to prepare for Trump’s threatened auto tariffs, especially as how they effect imports from Canada and Mexico. The Detroit Three automakers, as well as others, rely heavily on a supply chain that crisscrosses North America’s plants and suppliers.
Trump had earlier announced 25% tariffs against Canada and Mexico that would hit the auto industry but delayed those in early February and again in early March.
Economists have argued that tariffs worldwide could prompt a trade war, resulting in higher costs on consumer goods. But Trump has claimed that by increasing tariffs — including those he has already raised on Chinese goods as well as steel and aluminum worldwide — he will bring more manufacturing back to the U.S. and generate more import tariff revenue for the country.
Michigan is considered especially vulnerable to increased tariffs, especially in the auto industry, because of the state’s reliance on that sector.
Contact Todd Spangler: tspangler@freepress.com. Follow him on Twitter@tsspangler.
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