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President Donald Trump has decided to delay a portion of the recently imposed 25 percent auto tariffs on automobiles imported from Canada and Mexico for one month, following appeals from major automakers, the White House announced on Wednesday.
“We spoke with the big three auto dealers,” White House spokesperson Karoline Leavitt told reporters. “We are going to give a one-month exemption on any autos coming through [the U.S.-Mexico-Canada Agreement].”
Auto tariffs and Impact on Trade Agreements
The decision comes as the auto trade between the United States, Canada, and Mexico constitutes a significant portion of U.S. trade with its North American neighbors. Trade between the three countries totaled $1.6 trillion last year, with U.S. auto trade alone accounting for approximately $345 billion — $120 billion with Canada and $225 billion with Mexico.
Many automobiles and auto parts manufactured in Canada and Mexico currently enter the United States duty-free under the U.S.-Mexico-Canada Agreement (USMCA). The exemption provides temporary relief to automakers who rely on the seamless flow of goods across borders.
Diplomatic Discussions Underway
The announcement followed a phone call between Prime Minister Justin Trudeau and President Trump on Wednesday afternoon — the first direct conversation between the two leaders since the U.S. administration initiated sweeping tariffs on all Canadian goods a day earlier.
While the exact details of the call remain undisclosed, a spokesperson for Trudeau confirmed that the two leaders discussed “trade and fentanyl.” According to a senior Canadian government official, the conversation lasted 50 minutes and included U.S. Vice-President JD Vance and Commerce Secretary Howard Lutnick.
The official added that discussions between the two sides are expected to continue throughout the afternoon as both countries seek to navigate the economic fallout of the tariffs and explore potential resolutions.
