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Trump grants one-month exemption for US automakers from new tariffs on imports from Mexico, Canada

WASHINGTON — President Donald Trump is granting a one-month exemption on his stiff new tariffs on imports from Mexico and Canada for U.S. automakers, as worries persist that the newly launched trade war could crush domestic manufacturing.

The pause comes after Trump spoke with leaders of the “big 3” automakers, Ford, General Motors and Stellantis, on Wednesday, according to White House press secretary Karoline Leavitt.

Asked if 30 days was enough for the auto sector to prepare for the new taxes, Leavitt said Trump was blunt with the automakers seeking an exemption: “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.”

Trump had long promised to impose tariffs, but his opening weeks in the White House involved aggressive threats and surprise suspensions, leaving allies unclear at what the U.S. president is actually trying to achieve.

Based off various Trump administration statements, the tariffs on Canada, Mexico and China imposed on Tuesday are about stopping illegal immigration, blocking fentanyl smuggling, closing the trade gap, balancing the federal budget and other nations showing more respect for Trump.

All of that has left Canada, a long-standing ally, determined to stand up against Trump with their own retaliatory tariffs, rejecting a White House overture to possibly reduce some of tariffs imposed on Tuesday.

“We are not going to back down,” Ontario Premier Doug Ford said after speaking with the Canadian prime minister. “We will not budge. Zero tariffs and that is it”

Ford told The Associated Press that the auto sector in the United States and Canada would last approximately 10 days before they start shutting down the assembly lines because of the tariffs.

“People are going to lose their jobs,” he said.

After the White House announced the one month reprieve, shares of big U.S., Asian and European automakers jumped as much as 6%.

But pausing the 25% taxes on autos traded through the North American trade pact USMCA would only delay a broader reckoning to take place on April 2, when Trump is set to impose broad “reciprocal” tariffs to match the taxes and subsidies that other countries charge on imports.

Leavitt said the president is “open” to hearing requests from other industries seeking exemptions as well.

The White House repeatedly insisted that it would not grant exemptions and the sudden turnaround reflects the economic and political problems being created by Trump’s day-old tariffs. While the Republican president sees them as enriching the United States, his plans to tax imports have alienated allies and caused anxiety about slower economic growth and accelerating inflation.

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