By Janet H. Cho

The White House confirmed that President Donald Trump is giving auto makers a one-month exemption from his 25% tariffs on imports from Mexico and Canada.

The Big Three auto makers -- General Motors, Ford Motor, and Stellantis NV -- were given the reprieve "so they are not at an economic disadvantage," press secretary Karoline Leavitt told reporters on Wednesday.

The move comes after the White House spoke with the Big Three auto makers, Leavitt said. "We are going to give a one month exemption on any autos coming through USMCA," she said. "Reciprocal tariffs will still go into effect on April 2." USMCA is the acronym for the United States Mexico Canada Agreement, a trade deal Trump negotiated during his first term.

Commerce Secretary Howard Lutnick said on Bloomberg Television earlier Wednesday that Trump was thinking about "which sections of the tariffs that can maybe, maybe he'll consider giving them relief" until April 2. He repeated his comment from Tuesday that an announcement could come this afternoon.

April 2 is the day the U.S. will unveil its threatened reciprocal tariffs on imports from countries that impose levies on American products.

Lutnick said some sectors of the market could be excluded from the 25% tariffs on imports from Mexico and Canada because they already are compliant with existing rules under the USMCA.

"There will be some categories left out, it could well be autos, it could be others as well," Lutnick said Wednesday. "That's part of our discussion, and the president's really thinking about that."

Representatives from Ford Motor, General Motors, and Stellantis NV met with administration officials on Tuesday. Stellantis is the Netherland based auto maker whose brands include Chrysler, Dodge, Jeep, and Ram Trucks.

Auto makers have been seeking an exemption from the tariffs since Trump announced them last month, warning that they would increase the cost of manufacturing, auto parts, and car prices.

Ford Motor CEO Jim Farley has said the tariffs would have a "huge impact on our industry, with billions of dollars of industry profits wiped out, " along with raising car prices and hurting U.S. jobs.

Write to Janet H. Cho at janet.cho@dowjones.com

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March 05, 2025 13:53 ET (18:53 GMT)

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