Trump grants US carmakers 1 month exemption from new Canada, Mexico tariffs

US President Donald Trump is granting a one-month exemption on his stiff new tariffs on imports from Mexico and Canada for US carmakers, as worries persist that the newly launched trade war could crush domestic manufacturing.

The pause comes after Trump spoke with leaders of the “Big 3” carmakers, Ford, General Motors and Stellantis, on Wednesday, according to White House press secretary Karoline Leavitt.

Asked if 30 days was enough for the auto sector to prepare for the new taxes, Leavitt said Trump was blunt with the carmakers seeking an exemption: “He told them that they should get on it, start investing, start moving, shift production here to the United States of America where they will pay no tariff”.

Trump had long promised to impose tariffs, but his opening weeks in the White House involved aggressive threats and surprise suspensions, leaving allies unclear at what the US president is actually trying to achieve.

Based off various Trump administration statements, the tariffs on Canada, Mexico and China imposed on Tuesday are about stopping illegal immigration, blocking fentanyl smuggling, closing the trade gap, balancing the federal budget and other nations showing more respect for Trump.

All of that has left Canada, a long-standing ally, determined to stand up against Trump with their own retaliatory tariffs, rejecting a White House overture to possibly reduce some of tariffs imposed on Tuesday.