Trump Delays Tariffs on Mexico, Canada After Automaker Talks
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Trump Delays Tariffs on Mexico, Canada After Automaker Talks

Photo by:   Angelov1, Envato
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By MBN Staff | MBN staff - Wed, 03/05/2025 - 16:31

In a move to address concerns within the automotive sector, President Donald Trump has granted automakers a one-month exemption from tariffs on imports from Mexico and Canada. White House Press Secretary Karoline Leavitt confirmed that Trump spoke with top executives from Stellantis, Ford, and General Motors (GM) on Wednesday to discuss the reprieve.

The exemption will apply to vehicles that comply with the terms outlined in the 2020 United States-Mexico-Canada Agreement (USMCA), providing automakers with relief to avoid economic disadvantage during the interim period. Leavitt emphasized the president's intent to support the industry as it adjusts to the new tariffs.

This development follows the Trump administration's recent decision to impose a 25% tariff on all imports from Mexico and Canada, in addition to a 10% levy on imports from China. The exemption offers a temporary reprieve, allowing companies time to adjust without facing immediate financial strain.

The automotive industry, which relies heavily on the North American supply chain, has expressed concerns about the potential disruptions these tariffs could cause to production and profitability. Industry leaders had previously voiced their worries in a meeting with Commerce Secretary Howard Lutnick, urging the administration to reconsider the tariffs or provide additional relief.

Photo by:   Angelov1, Envato

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