Spokeswoman Karoline Leavitt said the exemption came at the request of General Motors, Ford and Stellantis
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OTTAWA — The White House announced on Wednesday that the U.S. was providing a one-month exemption to automobiles covered by a free trade agreement with Canada and Mexico from the 25 per cent tariffs he slapped on both countries.
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Spokeswoman Karoline Leavitt announced the 30-exemption from the president during a press briefing Wednesday afternoon, saying it came at the request of the big three automakers, General Motors, Ford and Stellantis.
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“We are going to give a one-month exemption on any autos coming through USMCA. Reciprocal tariffs will still go into effect on April 2, but at the request of the companies associated with USMCA, the president is giving them an exemption for one month so they are not at an economic disadvantage,” Leavitt told reporters.
Her comments came after Prime Minister Justin Trudeau and Trump held a call earlier that day, one day after Trump slapped 25 per cent tariffs on Canadian imports and Canada retaliated with 25 per cent tariffs starting with $30 billion worth of U.S. goods.
A senior government source says the call lasted about 50 minutes and that Vice President JD Vance and Commerce Secretary Howard Lutnick also joined.
Trudeau’s office released a two-sentence statement following the call.
“The Prime Minister and President spoke today about trade and fentanyl,” it read. “Both countries will continue to be in contact today.”
Trump released his own summary of the call on his Truth Social account. He said Trudeau called to ask “what could be done about tariffs.”
The president said he reiterated his concerns about fentanyl entering the U.S. from Canada — an issue that Trudeau says he no longer believes Trump’s tariffs to be about.
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“The call ended in a ‘somewhat’ friendly manner,” Trump wrote.
He went to say he asked Trudeau when the next election is, and said he believes Trudeau to be “trying to use this issue to stay in power.”
Trudeau told reporters on Tuesday that Canada has taken action against the flow of fentanyl since Trump began threatening his 25 per cent tariffs.
He said that while he does not know exactly what Trump wants, he believes U.S. tariffs were unavoidable and that Trump was looking to weaken Canada’s economy in order to be able to annex it.
Trump has repeatedly said he wants Canada to become a state.
Ontario Premier Doug Ford and other business leaders have warned the auto sector could be shut down within a week under 25 per cent U.S. tariffs. Economists also say the trade war could trigger a recession.
Leavitt said on Wednesday Trump expects auto makers to shift production to the U.S. to escape tariffs.
“He told them that he they should get on it, start investing, start moving production here to the United States of America, where they will pay no tariff. That’s the ultimate goal,” she said.
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Leavitt said on Wednesday that Trump was open to other exemptions from his current tariffs. One reporter at the White House mentioned eggs, which saw its prices soar in the U.S. because of the bird flu outbreak ravaging the poultry industry.
“He’ll always do what he believes is right for the American people,” said Leavitt.
During an earlier announcement in Ottawa, Employment Minister Steven MacKinnon said the federal government would not accept lower or partial U.S. tariffs.
“I don’t think it is acceptable to Canada, in any way, that tariffs be imposed,” he said.
“They are unjustified, they are ill-considered, they will hurt Americans and they will hurt Canadians. So, Canada’s position is that there should not be tariffs at all.”
More to come…
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