US President Donald Trump gave automakers a temporary exemption from tariffs on Canada and Mexico on Wednesday, just hours after a telephonic conversation with Canadian Prime Minister Justin Trudeau.
The talks made little progress, and concerns grew over the impact on consumers.
White House Press Secretary Karoline Leavitt said that after discussions with the “Big Three” US automakers—Stellantis, Ford, and General Motors—Trump decided to “give a one-month exemption on any autos coming through USMCA,” referring to the North American free trade pact.
“They made the ask, and the president is happy to do it,” Leavitt told reporters.
The impact of the decision was also seen on Wall Street, with stocks of the three companies rallying after the announcement, each surging by about six percent or more.
The American Automotive Policy Council said it applauded Trump’s move.
But prospects of wider relief were dampened after Trump’s call with Trudeau.
After the talks, Trump posted on X, accusing Trudeau of using the dispute to “stay in power.” He also said their discussion ended in a “somewhat” friendly manner.
25 per cent tariffs on Canada, Mexico
Trump’s 25 per cent tariffs on US imports from Canada and Mexico—lower for Canadian energy—took effect on Tuesday. This shook global markets and strained ties with both countries.
Content retrieved from: https://www.firstpost.com/world/trump-gives-us-automakers-one-month-exemption-from-canada-mexico-tariffs-13869097.html.
