WASHINGTON, D.C. – President Donald Trump announced Wednesday that automotive goods from Canada and Mexico will be temporarily exempt from newly imposed tariffs, offering a 30-day reprieve from the 25% duties on cross-border shipments.
The exemption is intended to give automakers complying with the United States-Mexico-Canada Agreement (USMCA) additional time to adjust their supply chains, according to White House Press Secretary Karoline Leavitt.
“The president sent me out here with a statement directly from him on this,” Leavitt said. “We spoke with the big three auto [makers]. We are going to give a one-month exemption on any autos coming through USMCA.”
Leavitt clarified that while reciprocal tariffs will still take effect on April 2, the temporary exemption was granted at the request of major U.S. automakers to prevent economic disruption. She did not specify whether the exemption applies to both fully assembled vehicles and auto parts.
In response to the announcement, MEMA, the vehicle suppliers association, issued a statement to the Detroit Free Press expressing cautious optimism. “Conversations held today indicate positive results that USMCA-compliant parts are included, but we are awaiting official confirmation from the administration.”
The exemption follows appeals from top executives at Ford, Stellantis, and General Motors, who sought relief from the tariffs to maintain stability in North American supply chains. Under USMCA, many vehicles and auto parts produced in Canada and Mexico typically enter the U.S. duty-free, but the new tariffs threatened to disrupt that flow.
With the April 2 deadline looming, the temporary exemption provides automakers with critical breathing room as they navigate shifting trade policies.
