Trump grants 1 month exemption for American car manufacturers

By Josh Boak and Rob Gillies, Associated Press

Washington (AP)-President Donald Trump is giving an exemption of one month over his new rigid tariffs in imports from Mexico and Canada for American car manufacturers, in the midst that the trade war can damage US manufacturers.

The announcement occurs after Trump spoke with the leaders of the “great” car manufacturers, Ford, General Motors and Stellantis on Wednesday. Trump also said he told the executive directors of the automobile manufacturer that they should transfer production to the United States from Canada and Mexico, according to the White House Press Secretary, Karoline Leavitt.

“We talked to the three great car dealers,” Trump said in a statement read by his spokesman. “We are going to give an exemption of a month on any car that arrives through USMCA,” reference to the North American Free Trade Agreement that renegotiated in its first mandate. “

Trump’s press secretary said the president is open to listening to additional exemptions, but Canadian Prime Minister Justin Trudeau is not willing to raise Canada’s retaliation rates if Trump leaves any tariff on Canada, said a senior government official Associated Press. The official confirmed the position on condition of anonymity, since they were not authorized to speak publicly about the matter.

“” Both countries will continue in contact today, “said Trudeau’s office.

Ontario’s Prime Minister, Doug Ford, told The Associated Press that the automotive sector in the United States and Canada would last approximately 10 days before they begin to close the assembly lines in the United States and in Ontario.

“People are going to lose their jobs,” he said.

The Secretary of Commerce, Howard Lutnick, said previously that there could be chills that reach 25% rates taught in Canada and Mexico.

But, Trump’s tariffs have aroused the bad blood among the allies who see their aggression in trade as wrong, with Canada suggesting that it will reject any offer to water the tariffs of the day. The commercial war is not necessarily a brief skirmish, since the White House maintains that even more severe imports in imports occur in April, even when companies and consumers care that the increase in costs will crush economic growth, make inflation worsen and result in dismissals.

Even so, the administration is dealing with the consequences of the rate that could create a great setback for its political mandate to reduce prices. Trump has recognized that his tariffs could cause some financial pain, however, he has repeatedly said that tariffs will lead to greater national investment and factory work.

In an interview on Wednesday with Bloomberg Television, Lutnick said Trump would update his rate plans with an afternoon ad, possibly saving sectors such as import tax cars.

On April 2, Trump plans to announce what he calls “reciprocal” tariffs so that they coincide with tariffs, taxes and subsidies provided by other countries. That could drastically increase tariff rates collected worldwide while keeping the risk of a wider rate.

Lutnick said he would speak Wednesday morning with Trump about possible options regarding Canada and Mexico, saying that both countries are working to address the concerns of the United States president about drug trafficking. Lutnick said he would wait for Trump to announce his decision on Wednesday afternoon.

On Tuesday, Trump put 25% of imports on imports from Mexico and Canada, taxing Canadian energy products such as oil and electricity at a lower rate of 10%. The president also doubled the 10% rate that placed 20% in China. The administration has said that tariffs are about stopping drug smuggling such as fentanil, but Trump also suggested that tariffs are trying to get rid of the persistent commercial deficits of the United States.

Taxes almost immediately triggered retaliation measures for Canada and China, and Mexico plans to announce their response on Sunday. The US stock market has renounced all profits since Trump’s victory in last year’s presidential elections and consumers are already exhausted by inflation and concerned with the costs of the increase in taxes would lead to higher prices. These concerns may have led Lutnick to indicate a possible retirement in an interview on Tuesday afternoon with Fox Business Network.

The president of the United States tried to tear down the possible economic damage as “a bit of alteration”, since the administration has suggested that estimates of greater inflation and slower growth in most external economic forecasts are exaggerated.

“It can be a bit of adjustment period,” he said after stating that farmers would benefit from reciprocal tariffs in countries that have tariffs on US exports. “You have to attend with me again and this will be even better.”

Trump also said in his speech that he spoke on Tuesday with “the three, the best people” in the main manufacturers of US cars and “are very excited.” The three major car manufacturers are General Motors, Ford and Stellantis, the Chrysler and Jeep parent company. The national automotive sector would be especially vulnerable to tariffs, since it depends on Mexico and Canada as part of its supply chains.

Trudeau said on Tuesday that his country They would put plaster rates In more than $ 100 billion (US dollars) of US goods during the 21 days, emphasizing that the United States had abandoned a long -standing friendship.

“Today, the United States launched a commercial war against Canada, its closest and closest partner, its closest friend. At the same time, they are talking about working positively with Russia, appeasing Vladimir Putin, a liar and murderer dictator. Have that makes sense, ”said Trudeau on Tuesday.

Mexico indicated that it would announce its own countermeasures on Sunday.

Beijing He responded with tariffs up to 15% in a wide range of exports of American farms. It also extended the number of US companies subject to export controls and other restrictions in approximately two dozen.

“If the war is what the United States wants, be it a tariff war, a commercial war or any other type of war, we are ready to fight until the end,” China’s Embassy published to the United States on X on Tuesday night.

In response to China, the United States Secretary of Defense, Pete Hegesh, told “Fox & Friends” of Fox News Channel that the United States is “prepared” for the war against the second largest economy in the world.

“Those who yearn for peace must prepare for war,” Hegseth said Wednesday morning. “If we want to dissuade the war with the Chinese or others, we have to be strong.”

Leavitt is one of the three administration officials who face a claim of Associated Press for reasons of first and fifth modification. The AP says that the three are punishing the news agency for the editorial decisions they oppose. The White House says that the AP does not follow an executive order to refer to the Gulf of Mexico as the Gulf of America.

Gillies reported from Toronto.

Originally published: March 5, 2025 at 8:26 AM CST