WASHINGTON ― President Donald Trump has agreed to exempt automobiles from newly imposed tariffs on imports from Canada and Mexico for the next month at the request of the three largest U.S. automakers, the White House said Wednesday.
White House press secretary Karoline Leavitt said the carve-out is “so they are not at an economic disadvantage” but reiterated reciprocal tariffs on goods from all nations that place fees on U.S. exports will still go in effect April 2.
“They requested the call. They made the ask,” Leavitt said of General Motors, Ford and Stellantis, which strongly oppose the tariffs. “And the president is happy to do it.”
More: ‘No room left’: Trump says 25% tariffs on imports from Canada, Mexico begin on Tuesday
The move comes after Trump’s 25% tariffs on all imports from Canada and Mexico ignited a trade war and sent the stock market tumbling for two straight days while stoking anxiety for consumers about higher costs.
President Donald Trump addresses a joint session of Congress at the U.S. Capitol on March 04, 2025 in Washington, DC. President Trump was expected to address Congress on his early achievements of his presidency and his upcoming legislative agenda.
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During his joint address to Congress Tuesday night, Trump said he spoke earlier in the day with leaders of General Motors, Ford and Stellantis.
Trump has argued the tariffs are in retaliation for a lack of border security from Canada and Mexico that has allowed fentanyl produced in China to flow into the United States. He’s also said the tariffs are needed to boost domestic manufacturing in key industries and to bring in new tax revenue. But economists warn that tariffs, which are taxes on imports, are passed down to consumers through higher prices.
Trump tells Trudeau border efforts ‘not good enough’
In addition to the tariffs on Canada and Mexico, Trump also placed an additional 10% tariff on imports from China.
Canadian Prime Minister Justin Trudeau responded to the tariffs Tuesday by announcing retaliatory 25% Canadian tariffs on American goods. He called Trump’s tariffs “a very dumb thing to do” in defiant remarks. “Canadians are reasonable and we are polite, but we will not back down from a fight,” Trudeau said.
Trump, in a pair of social media posts Wednesday, said Trudeau called him to ask “what could be done about tariffs.” He said he told Trudeau that many Americans have died from fentanyl that has come through the Mexican and Canadian borders. Trump added: “He said that it’s gotten better, but I said, ‘That’s not good enough.'”
More: Trump says Americans should get ready for ‘a little disturbance’ from tariffs
Trump accused Trudeau ‒ who he referred to as “Governor Justin Trudeau of Canada” ‒ of seizing on the tariff issue to “stay in power.” Trudeau in January announced plans to step down after nine years as prime minister when his Liberal Party chooses a new leader.
In his address to Congress, Trump acknowledged the tariffs will cause “a little disturbance” but the second-term president ‒ who won the 2024 presidential election with help from his economic messaging ‒ said it’s worth it.
“Tariffs are about making America rich again and making America great again,” Trump said, reaffirming that new reciprocal tariffs ‒ whereby the U.S. will impose tariffs on any nation that places duties on U.S. exports ‒ will go into effect April 2.
“Whatever they tax us, we will tax them,” Trump said. “If they do non-monetary tariffs to keep us out of their market, then we will do non-monetary barriers to keep them out of our market.”
Reach Joey Garrison on X @joeygarrison.
This article originally appeared on USA TODAY: Trump agrees to exempt auto imports from tariffs on Canada and Mexico
