Trump Pumps the Brakes on Auto Tariffs, Grants Canada and Mexico a One-Month Exemption

Donald Trump has made a revision to his tariff plan against Canada and Mexico.

On Wednesday, Trump announced a one-month exemption on auto tariffs for Canada and Mexico after meeting with the heads of Ford, General Motors, and Stellantis. This follows his Tuesday decision to impose 25 percent tariffs on imports from both nations.

In a statement read by White House press secretary Karoline Leavitt, Trump granted the exemption to automakers linked to the U.S.-Mexico-Canada trade agreement (USMCA), which he signed in his first term. The exemption applies to Ford, General Motors, Stellantis, and other manufacturers with North American production facilities.

When asked about additional carve-outs, Leavitt noted that Trump remains “open to hearing about additional exemptions.” However, the one-month exemption will expire in early April, when Trump plans to enact reciprocal tariffs on all other nations imposing duties on American goods.

Trump’s tariff move triggered backlash, especially from Canada, where Prime Minister Justin Trudeau called the decision “very dumb.” Both Canada and Mexico pledged retaliation, raising fears of a broader trade conflict.

On Wednesday, Trump defended his stance in a conversation with Trudeau, again accusing Canada of failing to curb the flow of fentanyl.