US President Donald Trump has announced a one-month tariff exemption for automakers in Mexico and Canada following discussions with major industrial leaders. White House Press Secretary Karoline Leavitt confirmed that reciprocal tariffs, initially set to take effect on April 2, will be postponed for companies associated with the United States-Mexico-Canada Agreement (USMCA). The decision aims to prevent economic disadvantages while carmakers adjust their operations. A 25% tariff on all imports from Mexico and Canada, along with a 10% levy on Chinese goods, was implemented earlier this week. Trump also plans to impose additional tariffs on automobile, pharmaceutical, and semiconductor imports starting April 2. The USMCA, which replaced NAFTA in July 2020, mandates that 75% of a vehicle’s components be manufactured in North America to qualify for zero tariffs. White House officials met with executives from Stellantis, Ford, and General Motors to discuss the changes. Trump urged automakers to shift production to the United States to avoid future tariffs. In response to Trump’s tariffs, Canada, China, and Mexico have announced retaliatory measures. Despite concerns from Ford CEO Jim Farley and a report suggesting potential price increases of up to $12,200 for some car models, automaker stocks surged following the announcement. Ford Motor’s shares rose 3.65%, General Motors increased by 1.76%, and Stellantis climbed 2.46%. European automakers also saw gains, with Mercedes-Benz, Volkswagen, and BMW reporting increases. Trump is considering further exemptions, particularly for agricultural products, amid ongoing trade negotiations. — news from Euronews
