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Donald Trump has handed the carmaker a month's resignation on tariffs on imports from Mexico and Canada, the White House said in its latest last-minute policy shift to Royle Corporate America.
White House Press Secretary Caroline Leavitt said the US president spoke with Stellantis, Ford and General Motors on Wednesday.
Leavitt added that the exemption applies to vehicles complying with the terms of the 2020 trade agreement between the US, Mexico and Canada.
“The president is exempt from them for a month, so they are not at a financial disadvantage,” Leavitt said.
The carve-out came after being turbulent by the Trump administration's 25% tariffs on imports from Canada and Mexico, responding to an additional 10% tax on China on Tuesday. At one point, all post-election profits for the S&P 500 were wiped out before the index was reclaimed.
Tariffs in Mexico and Canada are considered particularly punitive for the automotive industry due to the complex supply chains that intersect North America.
Trump's tariffs have escalated the North American trade war, with Canada responding with its own sudden collection of its own against all US imports. Mexico said it plans to announce its response on Sunday.
Leavitt suggested that more industries could argue for sculptures from tariffs, and said Trump “hears about additional exemptions.”
“He's always open to dialogue, and he'll always do that.. What's right, what he believes is right for Americans,” she added.
However, Leavitt said Trump's “mutual” tariffs will come into effect on April 2, as planned.
“He feels strong about it. No matter what, there's no exemption,” she said. “That's where I came from for a month.”
Leavitt said Trump would tell businesses to “get it” and start moving their production to the US. “That's the ultimate goal.”
Earlier Wednesday, U.S. Commerce Secretary Howard Lutnick said Trump would “consider” relief for certain sectors.
However, he repeated the Trump administration's frustration that Mexico and Canada were unable to tighten trafficking of the deadly opioid fentanyl, suggesting that the resignation could last just a month.
Shares in the US automaker jumped Wednesday, with Ford rising 5.1%, General Motors rising 6%, and Stellantis' US-listed deposit receipts rising nearly 9%. Other groups also acquired, with deposit receipts on Toyota's Wall Street List in Japan rising by 6%.
