Trump Announces 1-month Delay On Canada, Mexico Tariffs For Cars

President Trump on Wednesday announced a one-month exemption on tariffs against Canada and Mexico for cars following a meeting with the three major U.S. automakers.

Trump spoke with the leaders of the Ford, General Motors and Stellantis on the heels of imposing 25 percent tariffs on all imports from Mexico and Canada on Tuesday.

Following those discussions, Trump said in a statement read by White House press secretary Karoline Leavitt that the administration is giving a one-month exemption for automakers associated with the U.S.-Mexico-Canada trade agreement (USMCA), which Trump signed during his first term. 

The exemption would apply to Ford, General Motors and Stellantis, as well as other companies with production facilities in the three North American countries.

Asked if there would be any other carve-outs to come, Leavitt said Trump is "open to hearing about additional exemptions."

The one-month delay will expire in early April, when Trump has pledged to impose reciprocal tariffs on all other nations that have duties placed on American goods.

Trump on Tuesday imposed 25 percent tariffs on imports from Canada and Mexico, as well as an additional 10 percent tariff on Chinese goods. He cited frustration over the flow of fentanyl into the United States, though experts have noted relatively little fentanyl enters the country through the northern border.

The move sparked outcry from Canada, in particular, with Prime Minister Justin Trudeau calling Trump’s actions “very dumb.”  Both Canada and Mexico vowed retaliatory measures, sparking fears of a wider trade war.

Trump spoke with Trudeau on Wednesday, when he again asserted Canada was not doing enough to stop the flow of fentanyl.

Wednesday's adjustment is the latest example of Trump's tariff moves coming in fits and starts, leading to confusion among businesses and foreign leaders about what to expect. He has offered up shifting deadlines for when tariffs will be imposed, laid out vague criteria for how countries can avoid tariffs and adjusted tariffs he has imposed after the fact.