Detroit’s Big Three Get Short Tariff Reprieve

General Motors, Ford Motor, and Stellantis—parent company of Chrysler and Jeep—have received a one-month reprieve from President Donald Trump’s 25% tariffs on vehicle imports from Mexico and Canada.

Since November, fears over tariffs have weighed on Detroit’s Big Three, with their stock prices down an average of 15%. I Photo: General Motors

The White House confirmed the exemption a day after the tariffs took effect, Barron’s Daily’s Janet H. Cho and Al Root reported.

The White House is also considering carve-outs for other industries that, like the North American auto sector, comply with the trade agreement Trump negotiated with Mexico and Canada during his first term.

Automakers have been pushing for an exemption, warning that the tariffs would increase manufacturing and parts costs, ultimately driving up car prices for consumers.

Since November, fears over tariffs have weighed on Detroit’s Big Three, with their stock prices down an average of 15%. Ford CEO Jim Farley warned last month that tariffs on Canadian and Mexican imports could wipe out billions in industry profits.

Millions of vehicles sold in the U.S. are assembled in Canada and Mexico, and more than half the components in some popular models originate there.

Trump’s reciprocal tariffs on imports from countries that impose levies on American products are set to take effect on April 2. Trump falsely claimed recently that “numerous” car companies, including Honda, were planning “massive automobile plants in America.”

However, Honda has not announced any plans for a new U.S. factory.