Trump grants US carmakers 1 month exemption from new Canada, Mexico tariffs
US President Donald Trump is granting a one-month exemption on his stiff new tariffs on imports from Mexico and Canada for US vehicle makers, amid fears that the trade war could harm US manufacturers.
The announcement comes after Trump spoke with leaders of the “Big 3” carmakers, Ford, General Motors, and Stellantis on Wednesday. The US president also had a call with Canadian Prime Minister Justin Trudeau.
“We spoke with the big three auto dealers,” Trump said in a statement read by his spokesperson.
“We are going to give a one month exemption on any autos coming through USMCA,” referencing the North American free trade agreement he renegotiated in his first term.
On Wednesday, Trump told Trudeau that he had not done enough to curb fentanyl smuggling in a phone call that did not appear to convince the US president to lift his punishing 25 per cent duties on all imports from Canada and Mexico. Trump has also imposed an extra 10 per cent duty on Chinese goods.
Trump and Trudeau discussed fentanyl and trade issues on their call and talks will continue between the two countries, the Canadian prime minister’s office said.