President Donald Trump is granting a one-month tariff exemption to U.S. automakers on vehicle imports from Canada and Mexico.
“We spoke with the big three auto dealers,” White House Press Secretary Karoline Leavitt said. “We are going to give a one-month exemption on any autos coming through USMCA.”
“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,” Leavitt said. The three automakers with the exemption are Stellantis, Ford, and General Motors.
“They made the call, they made the ask, and the president is happy to do it. It’s a one-month exemption.”
To avoid tariffs, Honda reportedly aims to manufacture its next-generation Civic hybrid in Indiana, shifting production from Mexico. The Indiana Auto Plant in Greensburg will begin manufacturing the Civic hybrid in May 2028. Sources have estimated the Indiana plant will have an approximate annual output of 210,000 vehicles.
Trump imposed 25% tariffs on imports from Mexico and Canada and increased the 10% tariff on China to 20% on Tuesday.
Canadian Prime Minister Justin Trudeau has announced retaliatory tariffs, imposing a 25% tariff on 155 billion Canadian dollars (approximately $107 billion USD) worth of U.S. goods.
Trudeau called the U.S. tariffs “unjustified,” adding, “Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures.”
