U.S. President Donald Trump is set to provide a one-month exemption for automakers from the 25% tariffs imposed on Canada and Mexico, on the condition that they comply with existing free trade rules, as reported by the White House on Wednesday.
The White House also mentioned that Trump is willing to consider exemptions for other products under the new tariffs. Despite this temporary relief, Trump remains committed to his trade tensions with Canada and Mexico, particularly in urging both countries to address fentanyl smuggling.
Following discussions with Canadian Prime Minister Justin Trudeau, Trump expressed dissatisfaction with the progress made in tightening border security to combat the flow of fentanyl.
The potential price increases due to tariffs have been highlighted by Commerce Secretary Howard Lutnick, as uncertainty surrounds U.S. corporations and consumer confidence has declined, leading to recent stock market sell-offs.
Automakers are facing significant challenges due to the tariffs, as they operate production processes across all three North American countries, involving multiple border crossings for parts and finished vehicles to come together.
Furthermore, there have been reports suggesting that certain agricultural products might also be granted exemptions from the tariffs on Mexico and Canada, according to Bloomberg News.
