Stellantis, Ford, General Motors get 1-month Trump tariff exemption: White House

Sen. Markwayne Mullin, R-Okla., responds to several Democrats planning to boycott President Donald Trump’s address to Congress on ‘The Bottom Line.’
The “Big Three” automakers are getting a one-month exemption from the Trump administration’s tariffs that went into effect Monday, White House press secretary Karoline Leavitt announced Wednesday.
“We spoke with the Big Three automakers,” Leavitt confirmed. “We are going to give a one-month exemption on any autos coming through USMCA [United States-Mexico-Canada Agreement].
“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.
She told reporters that Stellantis, Ford and General Motors were the companies Trump spoke with.
“They requested the call. They made the ask and the president is happy to do it,” Leavitt added. “It’s a one-month exemption.”
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Ford Mach-E EV vehicles are seen at a dealership in Richmond, Calif., on Monday, March 3. (David Paul Morris/Bloomberg via Getty Images / Getty Images)
Leavitt also said Trump told the auto companies they should “start investing, start moving, shift production here to the United States of America where they will pay no tariff. That’s the ultimate goal. “
The United States-Mexico-Canada Agreement was signed during Trump’s first term.
In mid-February, Trump signed an executive order imposing reciprocal tariffs on U.S. trading partners, effectively raising duties on imports to match those levied on America’s exports.
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The Trump administration is imposing reciprocal tariffs on April 2. (Reuters/Nathan Howard / Reuters)
The Trump administration aims to complete its trade review by April 1 and plans to target what it calls the most “egregious” issues first, including countries with large trade surpluses with the U.S. and the highest tariff rates on American goods.
The president’s tariffs would match other countries’ higher tariff rates and aim to counter other trade barriers like burdensome regulations, value-added taxes, government subsidies and exchange rate policies and to negotiate with some countries to reduce those barriers.
Engines are lifted at the Stellantis Dundee Engine Complex on Aug. 18, 2022, in Dundee, Mich. Stellantis is one of the companies that requested a call with Trump over tariffs, according to Leavitt. (Bill Pugliano/Getty Images / Getty Images)
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Critics say the tariffs could raise prices for American consumers. The Trump White House sees tariffs as a tool for leverage in economic and foreign policy negotiations, and for bringing companies back to the U.S.
FOX Business’ Eric Revell, Louis Casiano, Hillary Vaughn and Reuters contributed to this report.
2025-03-05 19:20:06