Summarize this content to 2000 words in 6 paragraphs President Trump is giving a one-month exemption to U.S. automakers from the round of tariffs that took effect on March 4, White House press secretary Karoline Leavitt said on Wednesday. The announcement comes after Mr. Trump spoke with leaders of the so-called Big Three automakers — Ford, General Motors and Stellantis, the parent company of Chrysler, Dodge, Jeep and Ram — on Wednesday, Leavitt said.Mr. Trump’s imposition of 25% tariffs on all goods imported from Canada and Mexico, as well as an additional tariff of 10% on Chinese imports, were expected to hit the auto industry hard because many vehicle parts and components are imported from those countries to manufacture cars in the U.S.”We spoke with the Big Three auto dealers,” Trump said in a statement read by his spokesperson. “We are going to give a one-month exemption on any autos coming through USMCA,” referencing the North American free trade agreement he renegotiated in his first term.
Price of groceries, cars could increase due to Trump’s tariffs, experts say
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“Since President Trump’s successful USMCA was signed, Ford has invested billions in the United States and committed to billions more in the future to both invest in American workers and ensure all of our vehicles comply with USMCA,” Ford said in a statement. “We will continue to have a healthy and candid dialogue with the administration to help achieve a bright future for our industry and U.S. manufacturing.”
The goal is to give U.S. automakers time to shift their supply chains to within the U.S., Leavitt said. Mr. Trump “told them they should get on it, start investing, start moving, shift production here to the U.S. of America, where they will pay no tariffs. That’s the ultimate goal,” she said.The Trump administration has said the tariffs are aimed at curbing the flow of migrants and drugs such as fentanyl into the U.S., as well as redressing trade imbalances with other countries. The taxes quickly triggered retaliatory measures by Canada and China, with Mexico planning to announce its response on Sunday. The new tariffs Canada and Mexico could drive up car costs by as much as $12,200 for some models, according to a report from Anderson Economic Group (AEG), a Michigan-based economic consultancy. The broad-based tariffs are likely to fuel higher costs on multiple types of vehicles, including SUVs, small cars and electric vehicles, according to AEG’s analysis. Higher sticker prices would hit the auto market even as the typical car now costs close to a near-record high of $50,000, and would likely add more financial strain on inflation-weary consumers
Shares of U.S. automakers jumped on Wednesday afternoon, with Ford Motor rising 47 cents, or 5.1%, to $9.58. GM shares gained about 7%, while Stellantis climbed 9.2%.
The Associated Press
contributed to this report.
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Aimee Picchi
Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.
