Relief May Help Automakers Shift Production
President Donald Trump said Monday he’s considering temporary exemptions from 25% tariffs on the auto industry. The move aims to give carmakers more time to shift production back to the U.S.
Speaking from the Oval Office, Trump said companies moving away from foreign-made parts — especially from Canada and Mexico — could receive relief.
“I’m looking at something to help some of the car companies,” Trump said. “They’re switching to parts that were made in Canada, Mexico, and other places. They need a little time because they’re going to make them here.”
Market Reacts to Possible Exemptions
Trump’s comments sent shares of Ford, General Motors, and Stellantis higher. Automakers have warned the tariffs could raise vehicle prices for U.S. consumers.
The announcement follows a recent White House decision to exempt smartphones, computers, and other electronics from broad new tariffs. Officials said those tech exemptions are temporary.
Tariffs in Effect, More to Come
Tariffs on foreign-made cars and light trucks began April 3. Additional tariffs on parts like engines and transmissions will start by May 3.
Cars assembled in Canada and Mexico under the USMCA trade deal avoid the full 25% tariff. But many parts in those vehicles still face penalties.
Trump Defends Tariffs as Manufacturing Boost
Trump said the tariffs are vital to bring manufacturing back to the U.S.
“We have millions of their cars — BMW, Volkswagen, Mercedes, Benz, many others,” he said. “There are no Chevrolets in Munich, I can tell you that.”
Tech Tariffs Also Paused — For Now
Last week, the administration paused major tech tariffs — including a 125% duty on Chinese goods and a 10% global tariff. Apple, Microsoft, and Samsung were among the companies that benefited. Still, a 20% tariff on Chinese imports remains in place as pressure on Beijing to address fentanyl production.
Details Still Unclear
It’s not clear whether Trump will exempt just foreign auto parts or full vehicles. The uncertainty adds to market instability already shaken by shifting trade policies.
“Look, I’m a very flexible person,” Trump said. “I don’t change my mind, but I’m flexible. You can’t just have a wall. Sometimes you have to go around it, under it, or above it.”
Nvidia Investment Used as Proof of Policy Win
To support the tariff policy, the White House highlighted Nvidia’s April 14 announcement to build $500 billion in U.S. AI supercomputer factories. Officials called it a sign of America’s manufacturing revival.
China Strengthens Regional Ties
On the same day, China’s President Xi Jinping visited Vietnam. He and Vietnamese leaders signed several trade agreements to boost regional ties amid the U.S.-China trade war.
“I don’t blame China, I don’t blame Vietnam,” Trump said. “They’re trying to figure out, how do we screw the United States of America?”
