President Donald Trump has agreed to a one-month reprieve for automobile imports qualifying for duty-free treatment under the North American trade agreement. This decision followed a phone conversation with executives from General Motors, Ford, and Stellantis, who sought relief from new import taxes. The tariffs would have increased the cost of the typical new car by over $10,000, according to industry groups. Trump acknowledged that his tariffs could cause “a little disturbance” in the economy during his address to Congress. The tariff pause prevents the likely closure of auto plants in the U.S., Canada, and Mexico, which would have affected “hundreds of thousands of American autoworkers.” White House press secretary Karoline Leavitt announced that vehicles complying with the 2020 United States-Mexico-Canada Agreement (USMCA) would face no new tariffs until next month. The USMCA requires vehicles to meet specific targets for sourcing parts from North America to avoid a 2.5 percent tariff. Later, the White House confirmed that auto parts would also be exempt from the tariffs. Trump reiterated concerns about illicit fentanyl entering the U.S. during a call with Canadian Prime Minister Justin Trudeau. Leavitt stated that Trump expects automakers to relocate plants to the U.S. within the next month. Automakers could begin planning production moves within the 30-day window, though significant increases in U.S. automaking capacity will take time and money. Stellantis announced plans to reopen its Belvidere Assembly Plant in Illinois in 2027. Experts suggest a gradual increase in tariffs would better achieve the desired repositioning of automaking capacity. Trump’s decision to impose 25 percent tariffs on all merchandise from Canada and Mexico threatened to disrupt the trade agreement he once celebrated. The Dow Jones Industrial Average rose over 1 percent following the White House announcement, with leading automakers regaining ground lost the previous day. Commerce Secretary Howard Lutnick mentioned that the administration could exempt some products from the tariffs. Trump’s erratic trade policy has angered U.S. allies, with some expressing concerns over damaged trust. Trump called on manufacturers to move more operations to the U.S., highlighting recent announcements from Apple and Taiwan Semiconductor Manufacturing Co. The administration’s shifting tariff messages led to market uncertainty, with the Dow sinking 1.5 percent on Tuesday. — news from The Washington Post