Unlock stock picks and a broker-level newsfeed that powers Wall Street. Upgrade Now
Brent D. Griffiths
Wed, Mar 5, 2025, 12:52 PM 2 min read
-
The White House is giving automakers a one-month pause on tariffs.
-
Stellantis, Ford, and General Motors asked Donald Trump for the exemption.
-
The White House said Trump is open to discussing other possible exemptions.
The White House has granted car companies a one-month reprieve on tariffs after President Donald Trump spoke with representatives of the Big Three automakers.
"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," White House press secretary Karoline Leavitt told reporters. "The three companies he spoke to are Stellantis, Ford, and General Motors. They requested the call. They made the ask and the president is happy to do it."
It isn't all good news for Detroit.
Leavitt said automakers won't get another pause when Trump's second round of trade-related tariffs goes into effect on April 2. Additional tariffs on steel and aluminum are set to go into effect on March 12. Automakers, of course, rely heavily on those materials to make their products.
Shares rebounded on Wall Street after the announcement, a potential sign that traders are optimistic that more deals will be forthcoming.
Trump's current round of tariffs is related to his view that Canada, Mexico, and China are not doing enough to stop the flow of fentanyl into the US. Leaders of all countries have strongly disputed the White House's position.
Commerce Secretary Howard Lutnick suggested on Tuesday that automakers could get a tariff exemption. It remains to be seen if a broader truce will be reached.
Trump said he told Canadian Prime Minister Justin Trudeau on Wednesday that his country still had more work to do.
"Justin Trudeau, of Canada, called me to ask what could be done about Tariffs," Trump wrote on Truth Social. "I told him 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. He said that it's gotten better, but I said, 'That's not good enough.'"
Leavitt said that Trump "is open to dialogue" on further exemptions.
Read the original article on Business Insider
Comments