Trump pauses tariffs on autos from Canada, Mexico

President Donald Trump agreed on Wednesday to exempt automotive goods from newly imposed duties on imports from Canada and Mexico.

The 30-day exemption protects auto parts and vehicles from 25% tariffs on all cross-border shipments.

Press secretary Karoline Leavitt said the goal is to give automakers that comply with the United States-Mexico-Canada Agreement more time to shift their supply chains to the U.S. 

“The president sent me out here with a statement directly from him on this. … We spoke with the big three auto [makers]. We are going to give a one-month exemption on any autos coming through USMCA,” said Leavitt. “Reciprocal tariffs will still go into effect on April 2, but at the request of the companies associated with USMCA, the president is giving them an exemption for one month so they are not at an economic disadvantage.”

Related: Canada, China and Mexico strike back as Trump’s tariffs go into effect

Leavitt said the requests for a reprieve from import tariffs came from executives at Ford, Stellantis and General Motors. 

Many of the vehicles and auto parts made in Canada and Mexico enter the U.S. duty-free under the USMCA.

Mexico was the top U.S. trade partner for the second consecutive year in 2024, totaling $840 billion.

Canada ranked No. 2 for trade with the U.S. in 2024 at $761 billion, and China ranked third at $582 billion.

The temporary tariff relief arrives as Trump said he was dissatisfied with actions by authorities in Canada and Mexico on preventing fentanyl from crossing into the U.S.

“I told [Canadian Prime Minister Justin Trudeau] that many people have died from Fentanyl that came through the Borders of Canada and Mexico, and nothing has convinced me that it has stopped,” Trump posted on Truth Social. “He said that it’s gotten better, but I said, ‘That’s not good enough.’”

Leavitt said 25% tariffs will still be applied to all other goods being imported from Canada and Mexico, except for Canadian energy imports, which are subject to 10% import duties.

The White House said it will go forward with broad reciprocal tariffs to match duties that other countries charge on U.S. imports starting April 2.

Related: Retail trade groups: 25% tariffs a ‘crushing’ burden for American families

The post Trump pauses tariffs on autos from Canada, Mexico appeared first on FreightWaves.