Trump grants automakers temporary relief from tariffs

President Trump granted automakers a one-month reprieve from the import tariffs he imposed on Canada and Mexico — avoiding major disruption of the North American auto industry but underscoring the fickle nature of U.S. trade policy in the Trump era.

The president granted the tariff relief after conversations with Ford, General Motors and Stellantis, who complained that the import taxes that kicked in on Tuesday would make them less competitive than their European and Japanese rivals.

“The president is giving them an exemption for one month so they are not at an economic disadvantage,” said White House spokeswoman Karoline Leavitt. She stressed that “reciprocal tariffs” on imports from Europe and Asia are still set to take effect next month.

The White House said the exemption would also apply to other automakers operating in North American so long as they meet the content requirements of the United States-Mexico-Canada agreement, or USMCA, which Trump signed in 2020.

Over the last three decades, automakers have developed highly integrated operations in the U.S., Mexico, and Canada, with some vehicles crossing the border multiple times during assembly. The 25% tariff on imports from the United States’ northern and southern neighbors could jeopardize that system.

Trump wants the automakers to do more of their manufacturing in the United States.

“That’s the ultimate goal,” Leavitt said.

Not all get the tariff reprieve

The tariff relief doesn’t extend to the many other products the U.S. imports from Canada and Mexico, including lumber, fresh produce, tequila and Canadian whisky. Economists say much of the cost of the tariffs is ultimately passed along to consumers.

Trump said he spoke by telephone Wednesday with Canadian Prime Minister Justin Trudeau.

“The call ended in a “somewhat” friendly manner, Trump said in a social media post.

Stocks rallied as investors hoped for additional tariff relief. The Dow Jones Industrial Average rose 485 points, Wednesday, erasing more than a third of its loss in the two previous days.

Corrections:

  • March 5, 2025
    An earlier version of this story said incorrectly that temporary tariff relief had been granted only to Ford, General Motors and Stellantis. Any automaker that meets the North American content requirements of the USMCA will receive the temporary tariff relief.

 

DHS ends Temporary Protected Status for thousands from Nicaragua and Honduras

Some 76,000 people from Nicaragua and Honduras were covered by TPS, which provides protection from deportation and grants work permits to people from certain nations affected by war or natural disasters.

BRICS nations push back as Trump warns of tariffs

Leaders of the BRICS group of emerging economies meeting for their annual summit had hoped to downplay any differences with the U.S. But even a toned down group proclamation drew the ire of President Trump.

DOJ says no evidence Jeffrey Epstein had a ‘client list’ or blackmailed associates

The two-page memo outlines the "exhaustive review" the department conducted of the Epstein files in its possession, and also reiterates that Epstein died by suicide, contrary to some conspiracy theories.

Floods are getting more dangerous around the country, not just in Texas

The deadly floods in Central Texas were caused by extremely heavy rain. Climate change is causing even more rain to fall during the heaviest storms.

Near old Montana mine, special clinic for asbestos-related illness fights to survive

The Center for Asbestos Related Disease in Libby, Montana, closed in May after a court judgment. The clinic's federal funding is also threatened. Patients with scarred lungs worry about what's next.

4 things to know about the deadly Texas floods and ongoing search efforts

Search efforts continue for the dozens of people still missing after Friday's floods, as questions swirl over what went wrong. Here's what we know so far.

More Front Page Coverage