Car manufacturers to get one month tariff reprieve: White House

Donald Trump will grant car manufacturers a one-month exemption from the tariffs he imposed on Mexico and Canada, for cars that comply with a free-trade agreement between those countries.

Canadian Prime Minister Justin Trudeau and Donald Trump are expected to talk ‘soon’ on tariffs. Picture: AFP.

Donald Trump has agreed to provide the big three US automakers - Stellantis, Ford and General Motors - with a one month exemption from his 25 per cent tariffs on Mexico and Canada which commenced on March 4.

White House Press Secretary Karoline Leavitt told reporters the US President spoke to the US auto dealers who had been complying with the United States-Mexico-Canada Agreement.

“We are going to give a one month exemption on any autos coming through USMCA. Reciprocal tariffs will still go into effect on April 2,” she said. “But at the request of the companies associated with the USMCA, the President is giving them an exemption for one month so they are not at an economic disadvantage.”

Ms Leavitt said the three automakers had requested the call with Mr Trump and asked for the exemption which the President agreed to.

“The president is happy to do it,” Ms Leavitt said.

She also confirmed that Mr Trump had encouraged all three to begin the process of shifting their operations – which are based on an integrated supply chain – into the United States within the next 30 days to avoid being hit with the new tariff regime.

“He told them that they should get on it, start investing, start moving, shift production here to the United States of America where they will pay no tariff – that’s the ultimate goal,” she said.

Ms Leavitt said the President felt strongly that it would be beneficial for Canada to become part of the United States. “They wouldn’t be paying for these tariffs,” she said. ‘They’d have much lower taxes if they were part of our great country.”

The exemption also applies to any cars from Canada and Mexico that comply with the trade deal, an administration official told the Wall St Journal.

Pressed on how much of an adjustment period the US people would face as a result of Mr Trump’s tariffs, Ms Leavitt said the American people “elected this president to have monumental reform and change – including rebuilding our manufacturing base in this country, standing up to foreign nations who have been ripping off our country for decades.”

She said that required a “little bit of disruption.”

Mr Trump also spoke earlier in the day to Justin Trudeau after Canada retaliated against his 25 per cent tariffs, and accused the outgoing Canadian Prime Minister of trying to use the economic crisis to try and stay in power.

Posting on his Truth Social platform, Mr Trump said that Mr Trudeau called to “ask what could be done about tariffs” but that he told the Canadian leader people had died from fentanyl pouring into America through the Canadian and Mexican borders.

“Nothing has convinced me that it has stopped,” Mr Trump said. “He said that it’s gotten better, but I said, ‘That’s not good enough.’ The call ended in a ‘somewhat’ friendly manner!”

Mr Trump added that Mr Trudeau was “unable to tell me when the Canadian Election is taking place, which made me curious, like, what’s going on here? I then realised he is trying to use this issue to stay in power. Good luck Justin!”

In another post a short time later, Mr Trump said that he told “Governor Justin Trudeau of Canada that he largely caused the problems we have with them because of his Weak Border Policies, which allowed tremendous amounts of Fentanyl, and Illegal Aliens, to pour into the United States. These Policies are responsible for the death of many people!”