The Trump administration is pondering a month's delay for automakers facing newly implemented tariffs in Mexico and Canada. The report says it offers a short reprieve after urgent appeals from industry leaders.
Trump administration officials met with executives from Ford Motor Co., General Motors Co. and Stellantis NV on Tuesday to discuss the impact of tariffs and possible relief measures. According to Bloomberg News.
Another high-level meeting is scheduled for Wednesday at the White House to further evaluate potential tariff exemptions, according to the press.
White House officials told Bloomberg News that the situation was in flux as of Wednesday.
This post is being asked for comment from the White House, Ford, GM and Stellantis.
President Donald Trump on Tuesday imposes a 25% tariff on all goods imported from Canada and Mexico, addressing trade imbalances and encouraging domestic manufacturing.
These tariffs will have a major impact on the US automotive industry by increasing production costs, with analysts warning that the price of vehicles could rise by thousands of dollars. Potentially reduce sales and impact profitability.
Automakers like Honda are coordinating strategies such as relocating production from Mexico to the US to mitigate the impact of tariffs.
News of possible tariff delays sparked an immediate response in the stock market, with Stellantis stock rising by 8.1% in noon trading in New York.
GM's shares rose 6%, while Ford rose 4.5%.
Major US automakers, particularly Detroit-based automakers, have been actively lobbying to suspend or change tariffs, citing potentially disastrous consequences for the industry.
Commerce Secretary Howard Lutnick has recently suggested possible exemptions.
Speaking to Bloomberg TV on Tuesday, Lutnick didn't provide details, but suggested that the changes could be announced on Wednesday.
Some sources show that tariff delays allow automakers to build more time to develop plans to increase investment and production in the US. This is a key demand from Trump.
However, White House trade adviser Peter Navarro refused to confirm the imminent exemption for the automotive sector in a CNN interview Wednesday.
“I don't negotiate public airwaves,” he said as he pushed the issue against me.
If allowed, temporary delays will set another important decision in the coming weeks.
Trump is signaling plans to introduce new tariffs in early April, including certain taxes targeting automobile imports.
Industry leaders have urged management to exempt vehicles manufactured in North America that comply with parts adoption requirements under the US-Mexico-Canada Agreement (USMCA).
Among the executives who are sounding the alarm is Ford CEO Jim Farley, who has been particularly outspoken for his criticism of tariffs.
Last month, Farley described the policy as “devastating” for American automakers, warning that it would “puns a hole” in the economic stability of the industry.
