The Donald Trump administration is considering a month-long delay for automakers of new tariffs imposed by the United States on Mexico and Canada, Bloomberg reports, citing sources.
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What is known
Administration officials discussed the issue with the heads of Ford Motor, General Motors and Stellantis on Tuesday, the people said. Another meeting on possible tariff easing is scheduled for Wednesday at the White House.
Shares of U.S. automakers jumped on the news, with Stellantis extending its gains to 8.1%. GM shares rose 6% and Ford shares rose 4.5%.
Detroit's largest automakers have been actively trying to stop or revise Trump's tariffs over concerns about potentially catastrophic consequences.
Automakers and experts warn that rising costs through 25% tariffs imposed on neighbors on Monday could almost instantly raise vehicle prices by thousands of dollars and cripple supply chains.
Trump's Trade War
The Treasury Department wrote that on March 4, 2025, Trump imposed 25% tariffs on most Canadian and Mexican imports and doubled the existing 10% tariff on imports from China to 20%, which will affect about $1.5 trillion in annual imports.
In response to new U.S. tariffs, Canada is imposing a 25% tariff on $155 billion worth of U.S. goods. Canadian Prime Minister Justin Trudeau explained that Canada will immediately impose tariffs on $30 billion worth of U.S. goods. The remaining $125 billion worth of goods will be imposed in 21 days.
Trudeau also added that Canada would file a case at the World Trade Organization regarding the new U.S. tariffs. In the meantime, Canadian tariffs will remain in place until U.S. tariffs are lifted.
China said it would impose additional tariffs of 10-15% on some imports from the United States from March 10.
Trump then responded to Canada's decision to impose tariffs on American goods in response to new US trade tariffs. The US leader threatens to double the tariffs.
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