WASHINGTON – Following a call with the CEOs of General Motors and Ford, as well as the chair of Stellantis, President Donald Trump agreed to postpone tariffs on some North American-made vehicles for one month, the White House announced Wednesday.
The automakers had urged Trump to waive 25% tariffs on vehicles from Mexico and Canada that meet the rules of origin of the 2020 USMCA. The move will benefit US automakers as well as compliant foreign automakers.
“We are going to give a one-month exemption to any autos coming through USMCA… so they are not at a disadvantage,” White House press secretary Karoline Leavitt told reporters. “Reciprocal tariffs will still go into effect on April 2.”
Automakers have offered to increase their investments in the United States, but they want certainty about tariff and environmental policies, according to the sources, who also noted that Trump could impose additional tariffs on April 2 that would have a significant impact on US auto production.
The North American auto supply chain is highly integrated across the United States, Canada, and Mexico, with parts crossing the border at various stages of manufacturing, potentially exposing automakers to multiple tariffs.
On Tuesday, the call included GM CEO Mary Barra, Ford CEO Jim Farley, Ford executive chairman Bill Ford, and Stellantis chair John Elkann.
The automakers declined to comment. Stellantis informed dealers that it was willing to increase US investment. The White House did not make an immediate comment. Ford shares rose nearly 4% on Wednesday, while General Motors rose 5%.
Limiting the relief to vehicles in compliance may hurt some foreign automakers who have chosen to pay the 2.5% tariff to export vehicles from Mexico to the United States rather than follow North American free trade rules.
In his congressional address on Tuesday, Trump stated that he had spoken with top executives from the Detroit Three automakers that day and that tariffs and other policies would result in higher growth and “allow our auto industry to boom.”
Stellantis stated that it requires time before making major changes.
“We are prepared to work with the Trump administration to support further investment in our U.S. manufacturing footprint but we need time to make these changes without negatively impacting the business and our customers,” Stellantis wrote in a letter to Reuters.
The automakers also presented the idea to Commerce Secretary Howard Lutnick during a virtual meeting last week.