“Automakers tariff exemption: Ford, GM, and Stellantis get a one-month exemption from Trump’s 25% tariffs on imports from Canada, Mexico.” The exemption, which applies to automakers complying with the United States-Mexico-Canada Agreement (USMCA), extends the deadline until April 2.
White House Grants a 30-Day Pause
The tariffs, implemented on March 4, have raised concerns about rising production costs and increased new-car prices. However, after discussions with executives from Ford, General Motors, and Stellantis, the White House announced a temporary reprieve.
White House Press Secretary Karoline Leavitt confirmed the exemption, stating, “Reciprocal tariffs will still go into effect on April 2, but at the request of the companies associated with USMCA, the president is giving them an exemption for one month so they are not at an economic disadvantage.”
Automakers Face Supply Chain Challenges
It is expected that both cars and auto parts would be included, even though the administration has not said which imports are excluded. Automakers could find it challenging to significantly change their supply networks in just 30 days, even with the temporary reprieve.
Leavitt addressed these concerns, stating that Trump urged automakers to “start investing and moving production to the United States” to avoid tariffs in the future.
The Impact of Tariffs on New-Car Prices
If the tariffs take full effect after April 2, experts predict a significant impact on the automotive industry. Analysts suggest that manufacturing costs will rise, potentially increasing new-car prices by $1,000 to $9,000. The Detroit Free Press reported that automakers are still evaluating the financial implications of these tariffs.
This latest delay follows a previous 30-day pause agreed upon in early February, which expired on March 4. With only a month to adjust, automakers must now decide how to navigate the potential cost increases if the tariffs remain in place.
Source: Car And Driver
