Thu, 06 Mar 2025

Thu, 06 Mar 2025 Carmakers win reprieve from Canada and Mexico tariffs

Trump says he will exempt cars from the new import taxes, while continuing his criticism of Canada.
US President Donald Trump has temporarily exempted carmakers from new 25% import tariffs on Canada and Mexico, effective immediately. The move was announced by the White House after a phone call between Trump and Canadian Prime Minister Justin Trudeau regarding economic disruption caused by trade tariffs. Car manufacturers such as Ford, General Motors, and Stellantis will not have to pay the tariffs for cars made in North America that comply with the existing free trade agreement. This exemption applies only to one month's time, and it is expected that car production will be significantly affected if the tariffs are applied during this period. The exemption has led to an increase in US shares, which closed higher after two days of declines. Ford shares rose over 5%, General Motors shares increased by more than 7%, while Stellantis shares rose over 9%. White House officials have stated that the president is open to further exemptions and will continue dialogue with car manufacturers. The Canadian Chamber of Commerce has expressed concerns that tariffs could hurt affordability and damage business relationships. Ontario Premier Doug Ford also announced plans for retaliation, which include a halt in sales of US liquor in the province.
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