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Trump Grants US Automakers 1-Month Exemption from Tariffs on Mexico, Canada

Written: 2025-03-06 08:09:20Updated: 2025-03-06 15:05:42

Trump Grants US Automakers 1-Month Exemption from Tariffs on Mexico, Canada

Photo : YONHAP News

U.S. President Donald Trump has granted U.S. automakers a one-month exemption from the 25 percent tariffs on imports from Mexico and Canada that took effect Tuesday. 

White House press secretary Karoline Leavitt said Wednesday that after discussions with the “big three” U.S. automakers, Trump decided to grant the exemption for any autos coming through the U.S.-Mexico-Canada Agreement, which refers to the North American free trade agreement. 

Leavitt added that at the request of the companies, Trump provided the exemption for one month so they’re not at an economic disadvantage. 

The remarks appear to suggest the exemption was made to protect the U.S. auto industry, not because of U.S. relations with Canada and Mexico. 

The country’s big three automakers are Ford, General Motors and Stellantis, which owns Chrysler.

Seoul has also been trying to gauge any negative impact from the move, as South Korea's largest automaker Hyundai Motor Company operates 28 subsidiaries in the two countries; 12 in Canada and 16 in Mexico.

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