Trump Delays Ford, GM, Stellantis Tariffs On Mexico, Canada For One Month

President Donald Trump is partly stepping back from his tariffs on Mexico and Canada by pausing levies on automobile manufacturers’ imports, including Ford Motor Co F, General Motors Co GM and Stellantis NV STLA.

What Happened: Bloomberg reported on Wednesday that Trump had indeed made an exemption for the automotive industry after talking to industry leaders on Tuesday.

The tariffs on automakers were delayed by one month, similar to Trump’s delay in February.

“Reciprocal tariffs will still go into effect on April, 2, but at the request of the companies associated with USMCA [United States–Mexico–Canada Agreement], the president is giving them an exemption for one month so they are not at an economic disadvantage," White House press secretary Karoline Leavitt said.

Why it Matters: Experts say that tariffs impacting automakers could leave consumers paying substantially more for vehicles and sink automotive sales. Tariffs are taxes paid by domestic importers that are often passed along to consumers in the form of price hikes.

Trump has long championed tariffs as a means to bring back manufacturing jobs to the United States. Many economists are skeptical of Trump’s plans and believe tariff policies could lead to stagflation. While the U.S. economy specialized in manufacturing throughout the 20th century, the U.S. has recently dominated services industries.

Automotive manufacturers, including Ford, GM and Stellantis, offshored much of their production to other countries to reduce labor costs. All three OEMs have struggled in recent years, particularly Stellantis whose stock has fallen over 50% in the past year.

Price Action: The Big Three automakers saw upward price action on Wednesday following the news:

• Shares of Ford traded up 4.6%
• Shares of General Motors traded up 6%
• Shares of Stellantis traded up 8.3%

Also Read:

• US Services Sector Unexpectedly Expands In February Despite Slowing Job Growth

Photo: Shutterstock