Trump gives car manufacturers one exemption from definitions

On Wednesday, the White House announced the exemption of a single -month North American tariff for automotive companies after the president Donald Trump He spoke a day ago with presidents General Motorsand Ford Motor and Stelantis.

Automobile companies have urged Trump to waive a 25 % tariff on Mexico and Canada on vehicles that are compatible with the rules of origin in the United States, Mexico and Cananga agreement.

“The mutual definitions will continue to enter into force on April 2, but at the request of companies associated with USMCA, the president gives them one month exemption so that they are not in an indisputable situation,” said press secretary Caroline Levitte on behalf of Trump.

The US Automobile Policy Council, a commercial group representing the “Big 3” automotive companies, clapped Trump’s decision “to realize that vehicles and parts that meet the requirements of USMCA content in the United States and regional from these definitions.

Levitt said the president was “open” for requests to listen from other industries that seek exemptions as well.

Levitte also confirmed that the “Big 3” car companies requested a call with Trump, which he mentioned during his speech to Congress later in the day.

Two sources confirmed on Wednesday to CNBC that General Motors CEO Mary BarraJohn Elcan, Chairman of Stelantis, CEO of Ford, Jim Farley and Ford Bill Ford Chairman participated in the call.

The White House said it has given a one -month delay for definitions of auto -making companies with USMCA, which was I negotiated under Trump’s first state In the office.

The shares of GM, Ford and Stellantis were following the announcement. Stellantis closed on Wednesday by 9.2 %, followed by GM, with an increase of 7.2 % and Ford by 5.8 %.

The White House confirmed on Thursday that one -month exemption includes auto parts, accessories and other suppliers products in addition to completed vehicles.

It is not clear how clear if any inputs Timing CEO Elon Musk was on definitions or delay. After his campaign for Trump, Musk was one of his closest advisers and a constant presence next to him.

The exemption allows additional preparation and discussions between the White House and the auto industry for definitions. It also corresponds to a closer way with the tariffs of potential vehicles on Imports from outside North America.

Trump previously said this customs tariff will be confirmed on April 2, in a batch of car manufacturers to invest more in the United States to produce vehicle.

Trump said on Tuesday night before a A joint session of Congress. “This is a mixture of winning elections and definitions.”

Trump accidentally described the investment of a “new” factory in Indiana Honda Motor During his speech on Tuesday night. The company runs a large assembly factory in the state, however The latest major investments It was in Ohio.

On Wednesday, Honda thanked the president for recognizing the company, but confirmed that it “did not announce plans for a new factory in the United States at this time.”

“We have invested more than 3 billion dollars in the manufacture of advanced cars in America in the past three years only, with a total cumulative amount of more than 24.7 billion dollars,” Honda said in a statement sent via e -mail. “We look forward to continuing to invest locally and build high -quality products in America, as Honda has been doing 45 years ago.”

The US Automobile Policy Council argued earlier this week that vehicles and parts that meet USMCA requirements should be exempted from increasing customs tariffs.

There was great concern among the CEOs of cars and experts that the long tariffs would quickly eat in the company’s profits and production plans.

The executive managers with the auto resource in France, France on Wednesday, said that the company and its customers, including car manufacturers, are planning different emergency plans for definitions. This included work with customers to reach spare parts since it entered the tariffs by 25 % on Tuesday.

“The entire supply chain cannot swallow 25 %,” Martin Fischer, CEO of Forvia, said during a media event. “Cars will become more expensive for consumers if customs duties continue for a long time.”

On Tuesday, the S & P Global Mobility expected that approximately a third of the vehicle production in North America would be By next week, it was cut off due to the definitions by 25 %.

The data company and forecasting 25 car manufacturers on average that produces 63,900 light passengers in North America daily. The majority of these are collected, about 65 %, in the United States, followed by 27 % in Mexico and 8 % in Canada.