WASHINGTON ― President Donald Trump has agreed to exempt automobiles from newly imposed tariffs on imports from Canada and Mexico for the next month at the request of the three largest U.S. automakers, the White House said Wednesday.
White House press secretary Karoline Leavitt said the carve-out is “so they are not at an economic disadvantage” but reiterated reciprocal tariffs on goods from all nations that place fees on U.S. exports will still go in effect April 2.
“They requested the call. They made the ask,” Leavitt said of General Motors, Ford and Stellantis, which strongly oppose the tariffs. “And the president is happy to do it.”
The move comes after Trump‘s 25% tariffs on all imports from Canada and Mexico ignited a trade war and sent the stock market tumbling for two straight days while stoking anxiety for consumers about higher costs.
During his joint address to Congress Tuesday night, Trump said he spoke earlier in the day with leaders of General Motors, Ford and Stellantis.
Trump has argued the tariffs are in retaliation for a lack of border security from Canada and Mexico that has allowed fentanyl produced in China to flow into the United States. He’s also said the tariffs are needed to boost domestic manufacturing in key industries and to bring in new tax revenue. But economists warn that tariffs, which are taxes on imports, are passed down to consumers through higher prices.
Trump tells Trudeau border efforts ‘not good enough’
In addition to the tariffs on Canada and Mexico, Trump also placed an additional 10% tariff on imports from China.
Canadian Prime Minister Justin Trudeau responded to the tariffs Tuesday by announcing retaliatory 25% Canadian tariffs on American goods. He called Trump’s tariffs “a very dumb thing to do” in defiant remarks. “Canadians are reasonable and we are polite, but we will not back down from a fight,” Trudeau said.