Washington: U.S. President Donald Trump has decided to grant a one-month tariff exemption on vehicles entering the United States through the trade agreement between the U.S., Mexico, and Canada, as announced by White House spokesperson Karoline Leavitt. This decision aims to support U.S. automakers and was revealed following a discussion between Trump and the leaders of the major automakers, General Motors, Ford, and Stellantis.
According to Yonhap News Agency, the exemption decision follows the recent imposition of 25 percent tariffs on Canadian and Mexican goods. There is an exception for Canadian energy, which is taxed at 10 percent. These tariffs were implemented on Tuesday after a one-month delay, during which Canada and Mexico committed to enhancing efforts to curb cross-border drug trafficking.
Karoline Leavitt stated in a press briefing that the exemption was granted at the request of companies associated with the U.S.-Mexico-Canada Agreement (USMCA) to prevent them from facing economic disadvantages. The USMCA, a free trade agreement that replaced the North American Free Trade Agreement, was signed into law by Trump in 2020 with the goal of establishing "fairer and more reciprocal" trade for Americans.
Leavitt emphasized during the briefing that the U.S. intends to impose country-by-country reciprocal tariffs starting April 2. These tariffs will be aligned with the trading partners' tariffs and non-tariff barriers. Furthermore, the Trump administration plans to announce auto tariffs on the same date, potentially impacting the South Korean automotive industry.
The president has frequently utilized tariffs as a strategic tool to reduce America's trade deficit, promote domestic manufacturing, and achieve various policy objectives, such as limiting the influx of unauthorized migrants and drugs, including fentanyl.