US pauses auto tariffs by one month

The U.S. will give a one-month tariff exemption on cars entering the country from Canada and Mexico through the United States-Mexico-Canada Trade Agreement, White House Press Secretary Karoline Leavitt said Wednesday. 

The tariff pause followed conversations between President Donald Trump and the Big Three automakers — General Motors, Ford and Stellantis, Leavitt confirmed in a White House press briefing. She also reiterated that across-the-board reciprocal tariffs will still go into effect April 2. 

“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. 

Trump also spoke with Canada Prime Minister Justin Trudeau Wednesday, but the two leaders did not reach an agreement for a more widespread tariff pause as they did in February, per a Truth Social post from the president. 

Canada is levying tariffs of 25% on $155 billion worth of U.S. goods in response to duties enacted by the U.S. The tariffs are being levied in two rounds, with the first impacting $30 billion of products. The second round is slated to start after a 21-day comment period and will affect electric vehicles, trucks and buses, among other products. 

Trump is expected to speak with Mexico President Claudia Sheinbaum tomorrow. On Tuesday, Sheinbaum said she would announce countermeasures to the U.S. tariffs on March 9.

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