President Trump has given US automakers a month’s exemption from the tariff round that came into effect on March 4, White House press chief Karoline Leavitt said Wednesday.
The announcement comes after Trump spoke with the so-called three carmaker leaders — Stellantis, the parent company of Ford, General Motors, Chrysler, Dodge, Jeep and Ram, on Wednesday, Leavitt said.
Trump imposes a 25% tariff Imported products Additional 10% tariffs on imports from Canada and Mexico and China are The automotive industry is working hard Many vehicle parts and components are imported from those countries and are used to manufacture cars in the US.
“We spoke with the Big Three car dealership,” Trump said in a statement read by his spokesman. “We will provide a one-month exemption for cars coming through the USMCA,” referring to the North American free trade agreement he renegotiated in his first term.
“Since President Trump’s USMCA was signed, Ford has invested billions in the United States, committed to billions more in the future, invested in American workers, and ensured that all vehicles are USMCA compliant,” Ford said in a statement. “We will continue to have a sound and candid dialogue with the administration to help us achieve a bright future for our industry and the US manufacturing.”
In its own statement on tariff delays, GM said that automakers “have more vehicle assembly plants in the US than any other automaker,” adding that “we continue to invest billions of dollars each year in manufacturing sites, supply chains and employment in the US.”
The goal of the tariff suspension is to give automakers time to move their supply chains into the US, Leavitt said. “They said they should get on board, start investing, start moving, and shift production here to America,” Trump said.
The Trump administration says tariffs aim to curb the flow of drugs such as immigration and fentanyl to the United States, as well as to correct trade imbalances with other countries. The taxes promptly trigger retaliation measures by Canada and China, and Mexico was planning to release its response on Sunday.
New tariffs in Canada and Mexico can raise the cost of cars equally For some models, $12,200According to a report from Anderson Economic Group (AEG), a Michigan economic consulting firm.
AEG analysis shows that wide range of tariffs could drive higher costs for multiple types of vehicles, including SUVs, small vehicles and electric vehicles. A rise in sticker prices could potentially impact the car market and increase the financial burden on consumers who can withstand inflation, despite the typical car costs approaching nearly $50,000 on record
Shares of the US automaker rose 47 cents (5.1%) to $9.58 on Wednesday afternoon. GM stocks rose by around 7% and Stellantis rose by 9.2%.
I contributed to this report.
