President Donald Trump has announced a one-month exemption from recently implemented tariffs for U.S. automakers, according to White House press secretary Karoline Leavitt. The decision follows discussions with executives from Ford, General Motors, and Stellantis.
The 25% tariffs on imports from Canada and Mexico, along with an additional 10% tariff on Chinese goods, are expected to impact the auto industry, as many vehicle components are sourced from these countries. The temporary exemption aims to provide automakers time to adjust their supply chains.
“We spoke with the Big Three automakers, and we are going to give a one-month exemption on any autos coming through USMCA,” Trump said in a statement read by his spokesperson, referencing the United States-Mexico-Canada Agreement.
Ford acknowledged the exemption in a statement, emphasizing its investments in U.S. manufacturing. “Since USMCA was signed, Ford has invested billions in the United States and committed to further investments to support American workers and ensure compliance with the trade agreement. We will continue engaging with the administration to support the industry and U.S. manufacturing.”
General Motors also responded, stating, “GM has more vehicle assembly plants in the U.S. than any other automaker and continues to invest billions annually in its manufacturing base, supply chain, and workforce.”
The White House has framed the tariffs as measures to address trade imbalances and broader concerns, including migration and drug trafficking. In response, Canada and China have introduced retaliatory tariffs, with Mexico expected to announce its response soon.
Economic analysts warn that the tariffs could lead to higher vehicle costs. A report from the Anderson Economic Group, a Michigan-based consultancy, estimates that some vehicle prices could rise by as much as $12,200 due to the increased costs of imported parts and materials.
The tariffs are expected to affect multiple vehicle types, including SUVs, compact cars, and electric vehicles. Higher prices could add to existing financial pressures on consumers, with the average cost of a new car nearing $50,000.
Following the announcement of the exemption, U.S. automaker stocks saw gains. Ford Motor shares increased by 5.1% to $9.58, GM shares rose by approximately 7%, and Stellantis experienced a 9.2% increase.
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