- The “Big Three” domestic automakers have been granted a one-month exemption from the 25 percent tariffs on imports from Canada and Mexico.
- Ford, GM, and Stellantis (formerly Chrysler), whose vehicles comply with the USMCA, now have until April 2 to prepare for the taxes to go into effect.
- The tariffs, which went into effect yesterday, have caused concerns about significantly increasing production costs as well as raising new-car prices.
A day after the Trump administration implemented 25 percent tariffs on goods imported from Canada and Mexico, the White House announced that automakers who comply with the United States-Mexico-Canada Agreement (USMCA) get a 30-day exemption, which is set to lift on April 2.
“We spoke with the Big Three [automakers]. 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, 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,” U.S. press secretary Karoline Leavitt said today during a White House press briefing.
The three domestic automakers include Ford, General Motors, and Stellantis (formerly Chrysler). Leavitt confirmed that representatives from each company spoke to Trump yesterday to request the exemption. CNBC reported that Ford CEO Jim Farley and chairman Bill Ford as well as GM CEO Mary Barra and Stellantis chairman John Elkann were involved with the call.
The Trump administration announced the pause but didn’t specify the automotive imports that it covers. However, it’s expected that both auto parts and new vehicles are included in the exemption. It also seems unlikely that each automaker will be able to dramatically alter their production process and supply chains in the 30-day window. When Leavitt was asked about that, she said that Trump “told them they should get on it, start investing, start moving production here to the United States of America where they will pay no tariff. That’s the ultimate goal.”
This isn’t the first time Trump postponed the 25 percent tariffs on goods imported from Canada and Mexico. At the start of February, the president and leaders from both countries agreed to a separate 30-day pause, which was lifted yesterday, March 4. However, the latest pause only applies to companies that comply with the USMCA, and concerns remain that if or when the tariffs do go into effect, they’ll significantly increase manufacturing costs as well as raise the prices of new cars. According to a report by the Detroit Free Press, some analysts believe new-car prices could rise by between $1000 to $9000.
Eric Stafford’s automobile addiction began before he could walk, and it has fueled his passion to write news, reviews, and more for Car and Driver since 2016. His aspiration growing up was to become a millionaire with a Jay Leno–like car collection. Apparently, getting rich is harder than social-media influencers make it seem, so he avoided financial success entirely to become an automotive journalist and drive new cars for a living. After earning a journalism degree at Central Michigan University and working at a daily newspaper, the years of basically burning money on failed project cars and lemon-flavored jalopies finally paid off when Car and Driver hired him. His garage currently includes a 2010 Acura RDX, a manual ’97 Chevy Camaro Z/28, and a ’90 Honda CRX Si.
Source: Motor - aranddriver.com
