Carmakers, Mexican goods get monthlong US tariff break

President Donald Trump on Thursday said he was granting a one-month tariff exemption for Mexican goods that fall under the United States-Mexico-Canada trade agreement negotiated during his first term. Trump made the decision after speaking with Mexico’s president, Claudia Sheinbaum. During their talk, he thanked her for working to bolster border security. The Trump administration’s 25% tariffs on Canada and Mexico took effect Tuesday.

Trump’s compromise with Mexico came the day after his office announced a one-month reprieve from the tariffs for automakers. Press Secretary Karoline Leavitt said the exemption applied to all auto products compliant with the USMCA trade agreement. American automakers Stellantis, Ford, and General Motors had lobbied Trump for the change. Leavitt added that Trump was open to discussing additional exceptions. Separately, the Trump administration’s reciprocal tariffs are scheduled to take effect April 2, she said.

What other exemptions from tariffs is the White House contemplating? Commerce Secretary Howard Lutnick on Thursday told CNBC that all goods and services compliant with the USMCA trade agreement would likely also be granted a one-month exemption.

Are automakers moving production to the United States? Stellantis on Thursday thanked Trump for the one-month tariff reprieve and pledged to build more American cars. Reuters news agency reported on Feb. 3 that Japanese carmaker Honda planned to move manufacturing of its next Honda Civic to Indiana from Mexico to avoid tariff costs.

Dig deeper: Read my report on the retaliatory tariffs Mexico, Canada, and China imposed on the United States.