Trump Delays Auto Tariffs for Mexico and Canada, Giving U.S. Carmakers One Month

U.S. President Donald Trump has decided to postpone auto tariffs on Mexico and Canada for one month. The decision came after discussions with three major U.S. automakers—Ford, General Motors (GM), and Stellantis—to ensure the policy would not cause financial harm to these companies.

"At the request of companies involved in the USMCA (United States-Mexico-Canada Trade Agreement), the president has granted them a one-month exemption to prevent economic damage," said White House Press Secretary Karoline Leavitt, as reported by CNN on Thursday (March 6, 2025).

USMCA is a free trade agreement between the U.S., Mexico, and Canada, signed during Trump's first administration. However, the 25% tariff on the auto sector remains in effect.

Trump Pushes Automakers to Shift Production Back to the U.S.

Leavitt stated that Trump remains open to further tariff exemptions but emphasized that U.S. car manufacturers should use this delay to relocate their production back to the U.S.

"He told them they need to start investing, moving operations, and shifting production back to the United States, where they won’t have to pay tariffs. That is his main objective," Leavitt added.

However, moving production back to the U.S. is a complex challenge. Automakers would need to hire thousands of workers, allocate large investments, and develop new strategic plans to facilitate the transition.

General Motors Welcomes Trump’s Policy

One of the largest U.S. automakers, General Motors (GM), expressed appreciation for Trump’s decision, stating that it allows them to remain competitive and increase domestic investment.

"We appreciate President Trump’s approach, which enables American automakers like GM to remain competitive and invest domestically," a GM spokesperson stated.

GM also highlighted its significant investments in the U.S. since USMCA took effect. "With the most vehicle assembly plants in the U.S. compared to any other automaker, GM has invested over $60 billion since the implementation of USMCA and continues to allocate billions of dollars annually into manufacturing, supply chains, and job creation in the U.S.," GM added.

Canada Rejects Auto Tariffs, Vows Not to Back Down

Meanwhile, Canada strongly opposes U.S. auto tariffs, despite data from the U.S. Department of Commerce showing that automobiles are Canada’s second-largest export to the U.S.

Ontario Premier Doug Ford made it clear that he and Canadian Prime Minister Justin Trudeau oppose any tariffs on Canadian goods.

"We agree—no tariffs, and we will not back down," Ford firmly stated.

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