Trump gives incoming cars one-month delay on tariffs

President Trump said he’s giving a short-term tariff delay on cars coming from Mexico and Canada, as automakers worry that the tariffs will skyrocket costs.

Mr. Trump spoke Wednesday with the leaders of the Big Three auto dealers: Ford, General Motors and Stellantis.

“We are going to give a one-month exemption on any autos coming through the [United States-Mexico-Canada Agreement],” Mr. Trump said in a statement shared by White House press secretary Karoline Leavitt.

He said reciprocal tariffs will still be going into effect on April 2.

Ms. Leavitt said the president urged the automakers to “get on it — start investing, start moving, shift production here to the United States of America, where they will pay no tariffs.”

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.”

Mr. Trump placed 25% tariffs on goods imported from Canada and Mexico Tuesday and doubled tariffs on China bringing them to 20%. He also placed 10% tariffs on Canadian energy. He has argued that the tariffs are needed to help stop the flow of fentanyl and immigrants entering illegally into the U.S.

He also sees tariffs as a way to raise money to pay for tax cuts, like taxes on tips, overtime pay and Social Security.

Both Canada and China announced retaliatory tariffs. Mexican President Claudia Sheinbaum said tariffs from her country are coming Sunday.

The United Auto Workers, historically a backer of Democrats, praised Mr. Trump.

“Tariffs are a powerful tool in the toolbox for undoing the injustice of anti-worker trade deals. We are glad to see an American president take aggressive action on ending the free trade disaster that has dropped like a bomb on the working class,” UAW officials said in a statement.

The American Automotive Policy Council, which represents the Big Three, argued that vehicles and auto parts that comply with the Trump-brokered U.S., Mexico, Canada Agreement should be exempt from the tariff increase.

“Our American automakers, who invested billions in the U.S. to meet these requirements, should not have their competitiveness undermined by tariffs that will raise the cost of building vehicles in the United States and stymie investment in the American workforce, while our competitors from outside of North America benefit from easy access to our home market,” said AAPC President Matt Blunt.

Canadian Prime Minister Justin Trudeau also was looking for relief from Mr. Trump’s tariffs, which he called “very dumb.”

Canada responded with tariffs on $155 billion of U.S. goods, starting immediately with duties on $30 billion worth of goods such as orange juice and appliances. The remaining tariffs would go into effect in 21 days.

Mr. Trump blamed Mr. Trudeau for the trade problems between their countries.

In a call Wednesday, the president told Mr. Trudeau “that many people have died from Fentanyl that came through the Borders of Canada and Mexico, and nothing has convinced me that it has stopped.”

“He said that it’s gotten better, but I said, ‘That’s not good enough,’” Mr. Trump on social media, describing the call with Mr. Trudeau.

Mr. Trump said the call ended in a “‘somewhat’ friendly manner.”

In February, Mr. Trump delayed the tariffs on Canada and Mexico for a month after talks with Mr. Trudeau and Ms. Sheinbaum, who promised to step up border security to stop the flow of fentanyl into the U.S.

Commerce Secretary Howard Lutnick said Wednesday on Fox News that Mr. Trump might be “leaning towards an idea” that excludes the parts of Mexico and Canada that are included in the USMCA from tariffs for a month.