The 25% tariffs on imports from Canada and Mexico went into effect this week on Tuesday, March 4. Today, it appears there may be an exemption coming for the auto sector. This afternoon President Donald Trump’s spokesperson announced that after a meeting with representatives of General Motors, Ford and Stellantis, the president has decided to exempt automakers from the tariffs for one month. Much remains unclear.
What we know:
- The exemption will last until April 2, 2025.
- The exemption will apply to cars that comply with the United States-Mexico-Canada Agreement (USMCA).
What remains unclear:
- Will the exemption apply to automotive suppliers also, or only to automakers?
- Will the exemption apply to all automakers whose vehicles comply with the USMCA or only General Motors, Ford and Stellantis?
- Will the exemption continue past the current April date if the date for reciprocal tariffs is delayed or expires on April 2, 2025?
