United States President Donald Trump is granting a month exemption on his new tariffs on imports from Mexico and Canada for the American automakers, worrying that the newly launched trade war could crush domestic manufacturing.
The announcement followed Trump’s discussions with executives from Ford, General Motors, and Stellantis on Wednesday.
“We spoke with the big three auto dealers,” Trump said in a statement read by White House press secretary Karoline Leavitt on Wednesday. “We are going to give a one month exemption on any autos coming through USMCA,” referencing the North American free trade agreement he renegotiated in his first term.
Market sees growth after Trump grants one month exemption
After the Trump administration announced one month exemption, the stocks surged on Wednesday during a turbulent trading session, NBC News reported.
The S&P 500 index rose by 1.1%, whilst the technology-focused Nasdaq advanced 1.5%. The Dow Jones Industrial Average increased by approximately 500 points, representing a 1.1% rise.
Earlier that day, Trump expressed dissatisfaction with Canada’s efforts to control drug trafficking and immigration. On his Truth Social platform, following his conversation with Canadian Prime Minister Justin Trudeau, Trump stated that the proposed improvements regarding fentanyl control and unauthorised border crossings were “not good enough” to warrant removing the duties.
During his Tuesday evening congressional address, Trump maintained his firm stance on the tariff policy.
“We will take in trillions and trillions of dollars and create jobs like we have never seen before,” he declared to Congress in his initial speech of the second term.