In an aerial scene, the brand new Subaru cars sit in a storage lot at the auto warehouse company in Richmond, California on March 4, 2025.
Justin Sullivan | Getty images
The White House on Wednesday announced a one -month North American tariff exemption for vehicle manufacturers after President Donald Trump spoke with heads a day earlier. General Motors, Ford Motor And Descendant,
Automkers have urged Trump to waive 25% tariffs on Mexico and Canada on vehicles following the trade rules of the United States-Maxico-Canada Agreement.
Press Secretary Karolin Lewit said on behalf of Trump, “Reciprocal tariffs will still be applicable on April 2, but at the request of companies associated with USMCA, the President is giving them discounts for a month, so they are not in economic loss.”
The American Automotive Policy Council, a business group that represents “Big 3” Detroit Automkers, appreciated Trump’s decision “assuming that vehicles and parts that meet high US and regional USMCA material requirements should be exempted from these tariffs.
Lewitt said that the President is “open” for requests seeking exemption from other industries.
Levit requested a Tuesday call with Trump, who later mentioned it during his address to the Congress during his address.
On Wednesday, two sources confirmed CNBC that GM CEO Mary Barra, Stellentis President John Elkan, Ford CEO Jim Farley and Ford President Bill Ford participated in the call.
The White House said that it gave a month’s delay for tariffs on vehicle manufacturers whose cars comply with USMCA, which was interacted in Tram’s office under the first term.
GM, Ford and Stellentis Stock
GM, Ford and Stalentis shares were particularly after the announcement. Stelanis increased by 9.2%on Wednesday, followed by GM 7.2%and 5.8%more than Ford.
The White House on Thursday confirmed that one month discount included motor vehicle parts, goods and other suppliers products in addition to full vehicles.
It is not clear how much is an input Tesla CEO Elon Musk was on tariff or delay. After campaigning for Trump, Musk has been one of his closest advisors and has an almost continuous appearance from his side.
The discount allows additional preparation and discussion between the White House and the Motor Vehicle Industry on tariffs. It aligns more closely with potential vehicle tariffs on imports from outside North America.
Trump had earlier stated that those tariffs would be confirmed on April 2 in a push for vehicle manufacturers to invest more in the US for vehicle production.
Prior to a joint session of Congress on Tuesday night, Trump said Trump said, “We are going to grow in the auto industry, like no one has ever seen.” “This election is a combination of victory and tariffs.”
Trump wrongly invested a “new” plant in Indiana Honda Motor During his speech on Tuesday night. The company operates a large assembly plant in the state, but its most recent major investment has been in Ohio.
President Donald J. Trump addressed a joint session of the Congress as the chairman of Vice President JD Vance and House Mike Johnson (R-LA), who listens to the Capital Building House Chamber in Washington, DC on Tuesday, March 04, 2025.
Jabin Botsford | Washington Post | Getty images
Honda on Wednesday thanked the President for accepting the company, but confirmed that “did not announce plans for a new plant in the US at this time.”
Honda said in an email statement, “We have invested over $ 3 billion in advanced vehicle manufacturing in the US over the last three years, total than $ 24.7 billion in total.” “We are ready to invest locally and to continue manufacturing quality products in the US, as Honda has been for the last 45 years.”
Earlier this week, the American Automotive Policy Council argued that vehicles and parts that meet USMCA requirements should be freed from tariff growth.
The major concern among the motor vehicle authorities and experts was that long -term tariffs would quickly eat the company’s profits and production schemes.
France-based auto supplier officials said on Wednesday that the company and its customers, including vehicle manufacturers, are planning various contingency schemes for tariffs. The 25% tariff involves working with customers to reach parts agreements since the tariff came into effect on Tuesday.
“The entire supply chain cannot swallow 25%25%,” Forewia CEO Martin Fisher said during a media event. “Cars will become more expensive for consumers if the tariffs continue for a long time.”
S&P Global Mobility on Tuesday predicted that about one -third of vehicle production in North America could be cut by 25% tariffs by next week.
Data and forecast firm reports an average of 25 vehicle manufacturers, producing 63,900 light-duty passenger vehicles per day in North America. Most of them, around 65%, have gathered in the US, followed by 27% in Mexico and 8% in Canada.
