Trump Temporary Pauses Tariffs For Auto Imports From Mexico And Canada

The one-month exemption will allow the auto makers to prepare for the new taxes.

President Trump has put a temporary hold on tariffs for auto imports from Mexico and Canada.

The pause comes after Trump spoke with leaders of the big three automakers, Ford, General Motors, and Stellantis who worry the newly launch trade war could crush domestic manufacturing.

The one-month exemption will allow the auto makers to prepare for the new taxes.

Trump said they should take this time to “start investing, start moving and shift production here to the U.S. where they will pay no tariff.”

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