[co-author: Robert Hawes]
The White House announced on Wednesday, after President Trump met with the leaders of General Motors, Ford Motor, and Stellantis, that certain automobiles imported from Mexico and Canada will not be subject to the 25% tariffs on imports from those countries for a period of one month. The exemption was only for automobiles that qualify for preferential treatment under the USMCA, and White House spokesperson Karoline Leavitt stated that the exemption is only for one month, so that USMCA automakers are not disadvantaged until the President imposes reciprocal tariffs on April 2.
On Thursday, the President announced much more sweeping – albeit likely temporary – tariff relief:
- Relief until April 2 from 25% tariffs on all products of Canada and Mexico that qualify for and claim USMCA preference.
- A lower 10% tariff on potash that is a product of Canada or Mexico but that does not qualify for USMCA preference.
Products of Canada and Mexico that do not qualify for USMCA preferential treatment remain subject to 25% additionally duty. While the President informally announced that these exemptions would most likely expire on April 2, when he plans to announce reciprocal tariffs, the implementing proclamations state that the relief is effective as of 12:01 am March 7 but do not specify an end date.
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