In an aerial view, brand new subaru cars sit in a storage lot at auto warehouse co. On March 4, 2025 in Richmond, California.
Justin Sullivan | Getty Images
The White House on Wednsday Announced a One-month North North American Tariff Examption for Automakers after President Donald Trump spoke a day earlier with heads of General motors, Ford Motor and Steellantis,
Automakers have urged trump to waive 25% tariffs on mexico and canada on vehicles that comply with the united states-mexico-canada agrement’s traffic rules of Oroigin.
“Reciprocal tariffs will go into effect on April 2, but at the request of the company associateed with usmca, the president is giving them an examption for one month so that is the economic disadvantage, “Press Secretary Karoline Leavitt Said on Behalf of Trump.
The American Automotive Policy Council, A Trade Group Represting The “Big 3” Detroit Automakers, Applauded Trump’s Decision “Recizing that Vehicles and Parts That Meet The HIGH US and Regional us requirements should be exhempt from these tarifs. “
Leavitt said the president is “open” to hearing requests from other Industries seeking exemptions as well.
Leavitt also confirmed the “Big 3” Detroit Automakers Requested The Tuesday Call With Trump, Who mentioned it during his address to Congress later in the day.
Two sources on Wednsday confirmed to cnbc that gm ceo Mary BarraStellantis Chairman John Elkann, Ford Ceo Jim Farley and Ford Chair Bill Ford Participated in the call.
The white house said it granted a one-month delay for tarifs on automakers with cars comply with usmca, which was Negotiated under Trump’s First Term in office.
GM, Ford and Stellantis Stocks
Shares of Gm, Ford and Stellantis was notable up following the announcing. Stellantis Closed Wednsday Up 9.2%, Followed by GM Up 7.2%and Ford Higher by 5.8%.
It was not immmediatedly clea with just vehicles will be exhempt, or if automotive parts would also be included.
IT’s also Unclear How Much If any Input Tesla CEO Elon Musk Had on the tariffs or the delay. After Campaigning for Trump, Musk has been one of his closest Advisors and a Nearly Constant presence by his side.
The exemption allows for additional preparation and discusations between the white house and automotive industry on tarifs. It also more closely aligns with potential vehicle tarifs on Imports from outside of North America,
Trump Previously said that those tarifs would be confirmed on April 2, in a push for automakers to invest more in the us for vehicle production.
“We’re going to have growth in the auto industry like Nobody’s ever Seen,” Trump Said Tuesday Night Before A Joint Session of Congress. “That’s a combination of the election win and tariffs.”
Trump erroneously touted a “new” plant investment in indiana for Honda Motor DURING HIS SPEECH TUESDAY NIGHT. The company operates a large assembly in the state, but its Most Recent Major Investments Have been in ohio.
President Donald J Trump Addresses A Joint Session of Congress as Vice President JD Vance and Speaker of the House Mike Johnson (R-La) Listen in the Capitol Building ‘ In Washington, Dc.
Jabin Botsford | The washington post | Getty Images
Honda on Wednsday Thanked The President for Acknowledging The Company, but confirmed it “did not announs plans for a new plant in the us at this time.”
“We have invested over $ 3 billion in advanced vehicle manufacturing in America in just the past the past three years, with a cumulative total of more than $ 24.7 billion,” Honda Said in an emailed state. “We look forward to continuing to invest logally and build quality products in America, as honda has been doing for the past 45 years.”
The American Automotive Policy Council Earlier This Week Argued that Vehicles and Parts That Meet Usmca Requirements Should Be ExampT from the tariff Increase.
There was Major Concen Among Automotive Executives and Experts that prolonged tarifs would Quick Quickly Eat Into Company Profits and Production Plans.
Executives with France-Based Auto Supplier Forvia on Wedns Day the company and its customers, include automakers, have been planning differential pency plans for the tarifs. That has included working with customers to reach parts agrements since the 25% tarifs took effect tuesday.
“The Whole Supply Chain Cannot SWALLOW 25%,” Forvia Ceo Martin Ficcher Said during A Media Event. “Cars will get more expensive for consumers if tarifs continue for a long time.”
S & P Global Mobility on Tuesday Predicted Roughly a Third of Vehicle Production in North America Cold Bee Cut by next week due to the 25% tariffs,
The data and Forecasting Firm Reports 25 Automakers on Average Produce 63,900 Light-Duty Passenger Vehicles in North America Per Day. A Majority of that, roughly 65%, are assembled in the US, followed by 27% in Mexico and 8% in Canada.
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