March 6, 2025
He told them they should get on it, start investing, start moving, shift production here to the United States of America, where they will pay no tariff. That’s the ultimate goal.
White House press secretary Karoline Leavitt announcing a one-month pause on auto tariffs on Mexico and Canada. The temporary exemption came one day after 25% tariffs went into effect for Mexico and Canada, which ultimately received strong pushback from the top U.S. automakers.
Why It Matters: The Big Three automakers — General Motors, Ford and Stellantis — raised concern over new tariffs. After speaking with executives, President Donald Trump will pause tariffs on automakers for one month to give them extra time to figure out how to move more factories stateside. The announcement comes as industries continue navigating new tariffs and the impact they have on businesses and consumers.
- All other 25% tariffs on Mexico and Canada remain in effect.
- Automakers explained that the tariffs would increase the price of an average new car by thousands of dollars, giving producers in Asia and Europe an advantage.
- Auto supply chains are complex, and parts often cross borders multiple times. The White House has noted that parts are part of the exemption announced.
- Canada’s Prime Minister Justin Trudeau reiterated after the announcement that he will not lift Canada’s retaliatory tariffs until the U.S. removes all tariffs on Canada.
Read More: Tariffs on cars from Mexico and Canada delayed by one month (CNN)
Trump agrees to one-month tariff reprieve aimed at helping U.S. automakers (The Washington Post)
Image Credit: Brydon Creative / Unsplash
by Emily Hooker, based in Texas
