automotive

Trump Considers Exempting Import Tariffs On Cars And Auto Parts

The President of the United States, Donald Trump, has announced that he is considering a temporary exemption from import tariffs on vehicles and parts, allowing automotive manufacturers additional time to relocate their production to the U.S. 

"I am contemplating measures to assist car companies," Trump stated to reporters in the Oval Office on Monday, April 14, 2025. "They are currently sourcing parts from Canada, Mexico, and other countries. They need a little time, as they will ultimately produce them here." 

When asked about the temporary exemptions he is considering, Trump did not specify the duration of the delay or the relaxation of automotive tariffs. 

This announcement could provide a boost to car manufacturers who have been under pressure from the import tariffs on vehicles and light trucks imposed by Trump. However, it also adds uncertainty regarding the direction of his trade policies. Shares of General Motors Co, Ford Motor Co, and Chrysler's parent company, Stellantis NV, rose to session highs following Trump's remarks, reversing a previous downward trend. 

The automotive import tariffs are viewed as potentially leading to higher prices for U.S. consumers and disrupting the supply chain of an industry that heavily relies on cross-border collaboration among the U.S., Canada, and Mexico. Nevertheless, Trump emphasized that this policy is essential for revitalizing the domestic manufacturing sector. 

He has implemented a 25% tariff on fully assembled vehicles, with tariffs on parts set to take effect by May 3 at the latest. Separate tariffs on Canada and Mexico already include exemptions for vehicles that meet local content thresholds as per the existing North American trade agreemen.

Tag: Canada Donald Trump Import Tariffs