Richmond, California – Aerial footage captures a storage lot filled with brand new Subaru cars at Auto Warehouse Co. on March 4, 2025. The White House recently announced a one-month exemption on tariffs for automakers following a conversation between President Donald Trump and top executives from General Motors, Ford Motor, and Stellantis.
Automakers had been advocating for a waiver on the 25% tariffs imposed on vehicles from Mexico and Canada that comply with the rules of origin outlined in the United States-Mexico-Canada Agreement. The exemption granted by the President allows for further discussions between the White House and the automotive industry to better align with potential tariffs on imports outside of North America.
Following the announcement, shares of the automakers involved saw an increase of between 4% and 9%, reflecting market confidence in the temporary tariff exemption. The exemption aims to ensure that American automakers, heavily invested in the US to meet USMCA requirements, do not face economic disadvantages due to the tariffs.
The American Automotive Policy Council, representing Ford, GM, and Stellantis, emphasized the importance of exempting vehicles and parts that meet USMCA requirements to protect the competitiveness of US automakers in the global market. The decision to delay the tariffs for one month provides an opportunity for ongoing dialogue between industry stakeholders and the government to address concerns related to production costs and investments in the American workforce.
S&P Global Mobility data reveals that on average, 25 automakers produce approximately 63,900 light-duty passenger vehicles in North America daily, with the majority being assembled in the US. The temporary tariff exemption signals a willingness to support the automotive industry and promote domestic production as part of the broader economic agenda.
Moving forward, discussions between automakers and policymakers are expected to focus on finding a long-term solution that balances the need for fair trade practices with the goal of boosting American manufacturing. The exemption underscores the complexities of international trade negotiations and the intricate relationship between economic policies and industry initiatives in a globalized marketplace.