United States President Donald Trump is granting a one-month tariff exemption to automakers importing vehicles from Mexico and Canada, White House Press Secretary Karoline Leavitt said Wednesday.
The exemption comes one day after the United States imposed 25% tariffs on all Mexican exports and most Canadian exports.
White House Press Secretary Karoline Leavitt said Wednesday that President Trump is “open” to other exemptions like the one he just gave automakers operating within the USMCA but did not give any specifics.
At a press briefing on Wednesday afternoon, Leavitt said she had a statement “directly from” Trump on the tariff exemption for automakers.
“We spoke with the big three auto dealers. We are going to give a one-month exemption on any autos coming through USMCA,” she said without specifying whether the exemption would also apply to auto parts.
“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,” Leavitt said.
“The three companies that [Trump] spoke to are Stellantis, Ford and General Motors. They requested the call, they made the ask and the president is happy to do it; it’s a one-month exemption,” she said.
Leavitt said that Trump is “open” to requests from other industries seeking exemptions to U.S. tariffs.
Reuters reported that the exemption announced on Wednesday would also “benefit some foreign brand automakers with large U.S. production footprints, including Honda and Toyota.”
However, “some competitors that don’t comply” with USMCA rules would still have to pay the full 25% U.S. tariffs, the news agency said.
Asked whether 30 days was enough time for the auto sector to prepare for the impact of 25% tariffs on imports from Mexico and Canada, Leavitt said that Trump told automakers that they should “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.
Auto production in North America is highly integrated, with automakers in the United States, for example, sourcing many of the constituent parts for the vehicles they make from Mexico and/or Canada. That makes tariffs on imports from Mexico and Canada particularly damaging for automakers.
The United States is the top destination for finished vehicles exported from Mexico. A 25% tariff on those vehicles could increase their cost in the U.S. by several thousand dollars or more.
In response to a reporter who asked “how long should Americans expect to pay higher prices” for imported goods such as strawberries, bananas and avocados as a result of U.S. tariffs, the press secretary was non-committal.
“I don’t have a crystal ball but what I can assure the American people is that this president and this administration is doing everything they can” to make life more affordable, Leavitt said.
The United States’ main stated reason for imposing the tariffs on Mexican and Canadian goods is that a large quantity of fentanyl is coming into the U.S. via its southern and northern borders.
At Leavitt’s press briefing, one reporter pointed out that less than 1% of the fentanyl seized by the United States last year was detected at the northern border with Canada.
“The president did just put out a statement on his call with the Governor Justin Trudeau, as he calls him, of Canada,” Leavitt said, referring to a post to Trump’s Truth Social account.
The moment U.S. tariffs came into effect this morning, so did the Canadian response.
Canada will be implementing 25% tariffs against $155 billion of American products.
Starting with $30 billion worth of goods immediately, and the remaining $125 billion in 21 days’ time.
— Justin Trudeau (@JustinTrudeau) March 4, 2025
On Tuesday, Canada launched retaliatory 25% tariffs on selected U.S. products. Prime Minister Justin Trudeau said Canada will impose more tariffs if the U.S. doesn’t lift its tariffs on Canada.
“He said that he was not pleased [with Canada’s action against fentanyl]. … He said it’s not good enough. He told Prime Minister Justin Trudeau that directly,” she said.
“… When it comes to fentanyl, for the last four years, unfortunately, our neighbors to the north and the south, Canada and Mexico respectively, have allowed America to be a dumping ground, not just for illegal aliens but for illegal, poisonous deadly fentanyl, which is now the number one killer of young people in this country aged 18 to 34,” Leavitt said.
While the United States has made one concession by giving automakers a one-month reprieve from tariffs, a trade war between Mexico and the U.S. — each other’s largest trade partner — is still brewing.
President Claudia Sheinbaum said Tuesday that she will announce retaliatory “tariff and non-tariff measures” during a rally in Mexico City’s central square, the Zócalo, on Sunday.
On Wednesday she told reporters “there will be no submission” on Mexico’s part, and declared that Mexico will seek other trade partners “if necessary.”
The Canadian government announced Tuesday that it was moving forward with 25% tariffs on $155 billion worth of imported goods, beginning immediately with a list of goods worth $30Â billion.
Sheinbaum has indicated that she will speak to Trump about tariffs on Thursday.
In early February, Mexico and Canada reached agreements with the United States that resulted in one-month pause on 25% tariffs that were due to take effect on Feb. 4. As part of the Mexico-U.S. deal, Sheinbaum agreed to deploy 10,000 National Guard troops to the northern border.
For months, the Mexican government has focused on pointing out that United States tariffs on Mexican exports would have a detrimental effect on the U.S. economy. Economy Minister Marcelo Ebrard has said that 25% tariffs would cause the loss of 400,000 jobs in the United States and increase prices for U.S. consumers.
