After U.S. automakers warned that 25% tariffs on Mexico and Canada would raise car and truck prices by thousands of dollars, President Trump has decided he is in no hurry and offered a reprieve.
The White House has announced that the tariff on auto and parts, which took effect this week, will be rescinded for 30 days. That action followed a warning from GM, Ford and Stellantis that the tariff would place them at a competitive disadvantage with foreign automakers, that would be able to sell their vehicles for much less.
White House News Secretary Karoline Leavitt said the automakers made a direct appeal to Trump, who agreed to delay the tariff on parts and vehicles.
“At the request of the companies associated with USMCA (trade agreement), the president is giving them an exemption for one month so they’re not at an economic disadvantage,” Leavitt said at the daily press briefing.
As they lobbied against the tariff, the U.S. auto industry said the price for a battery-electric crossover vehicle could rise as much as $12,000, a full-size SUV by $9,040 and a pickup truck by $7,960, citing a report from consultancy Anderson Economic Group, which reviewed unnamed models from GM, Ford, Chrysler, Toyota, Honda, Kia, BMW, Audi and Tesla assembled in North America.
It’s not immediately clear what a 30-day delay in the tariffs will achieve for the auto industry.
Sign up below for The Daily Consumer, our newsletter on the latest consumer news, including recalls, scams, lawsuits and more.