As tariffs begin, auto industry given one-month exemption

Imports from Canada and Mexico to U.S. automakers were given a one-month exemption to new tariffs on goods from these two countries, which began March 4. This decision by President Donald Trump comes after a March 5 conversation with three leading U.S. auto manufacturers: Ford, General Motors and Stellantis.

The administration indicated this would be a one-time exemption that gives the auto industry time to prepare but White House press secretary Karoline Leavitt added that the president is “open” to hearing requests from other industries seeking exemptions as well.

Ford told The Associated Press that the auto sector in the United States and Canada would last approximately 10 days before they start shutting down the assembly lines because of the tariffs.

Response from foreign countries

This week, Canada, China and Mexico announced plans to impose tariffs in response to those implemented by the U.S. China added tariffs of up to 15% on several U.S. farm exports and expanded the number of U.S. companies subject to export controls and other restrictions by about two dozen.

Canadian Prime Minister Justin Trudeau said his country would implement tariffs on over $100 billion of American goods over the course of three weeks. Mexican President Claudia Sheinbaum said Mexico will announce on Sunday what products the country intends to target with tariffs.