U.S. President Donald Trump has granted the Big 3 automakers(GM, Ford, and Stellantis) a 30-day tariff exemption.
The announcement was made during a White House media briefing after a meeting between the companies and Trump on Wednesday.
"We spoke with the Big 3 auto dealers. We are going to give a one-month exemption on any autos coming through USMCA. Recipricol 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 that they are not at an economic disadvantage," Trump said in a statement read by Press Secretary Karoline Leavitt.
Trump is encouraging the automakers to shift production to the United States.
"He told them that they should get on it, start investing, start moving, shift production here to the United States of America where they will pay no tariff," said Leavitt.
The Canadian Automotive Partnership Council calls for a long-term resolution to support the automotive industry throughout North America.
"The Canadian and U.S. automotive industries form one of the most integrated economic sectors in the world, producing 11.4 million vehicles in 2024, and supporting over 1 million jobs in both countries. Canada-U.S. automotive trade is well balanced – in 2024, Canada imported C$77 billion worth of motor vehicles and parts from the United States, while Canadian exports to the United States totaled C$73 billion.
"Free trade between Canada, the U.S. and Mexico, beginning with the Auto Pact in 1965 and evolving from NAFTA to CUSMA, has supported a thriving, highly integrated North American automotive industry, employing millions of workers across all three countries. Reestablishing the free flow of goods across borders will be the key to the success of the industry across all three countries," said Rob Wildeboer & Jean Marc Leclerc, co-chairs of the Canadian Automotive Partnership Council in a joint statement.