Wed Mar 05 19:56:00 UTC 2025: ## Trump Grants One-Month Tariff Exemption to US Automakers Amid Trade War Fury

**Washington, March 6, 2025** – President Donald Trump has granted a one-month exemption on his newly imposed tariffs on Mexican and Canadian auto imports, bowing to pressure from the “Big Three” automakers – Ford, General Motors, and Stellantis – who warned of imminent plant closures and job losses. The announcement follows a Wednesday meeting between President Trump and the automakers’ CEOs, where he reportedly urged them to shift production back to the US.

The 25% tariffs, implemented on March 4th, also targeted Canadian energy products (at a 10% rate) and doubled existing tariffs on Chinese goods to 20%. These actions immediately triggered retaliatory measures from Canada and China, with Mexico expected to respond on March 9th. Canada levied tariffs on over $100 billion of US goods, while China imposed up to 15% tariffs on US farm exports and expanded export controls on numerous US companies.

The exemption, announced by White House Press Secretary Karoline Leavitt, applies only to automobiles under the USMCA agreement. While President Trump expressed openness to further exemptions, Canadian Prime Minister Justin Trudeau reportedly refused to lift retaliatory tariffs unless all tariffs on Canada are removed. Ontario Premier Doug Ford warned that the auto sector in both countries could face shutdown within 10 days without relief.

The trade war, which the White House insists is about combating drug smuggling and trade deficits, has ignited fierce criticism from allies. Concerns are rising about the economic impact, with fears of increased inflation, slower growth, and job losses. The US stock market has already reversed all gains since Trump’s reelection. Despite acknowledging potential economic pain, President Trump maintains the tariffs will ultimately boost domestic investment and manufacturing jobs.

Further escalating tensions, President Trump plans to announce “reciprocal” tariffs on April 2nd, mirroring tariffs, taxes, and subsidies imposed by other countries. This could drastically increase global tariff rates. Commerce Secretary Howard Lutnick hinted at potential carve-outs to the tariffs even as Defence Secretary Pete Hegseth stated the US is “prepared” for war with China. The White House continues to downplay the severity of the economic fallout. The situation remains highly volatile, with the potential for further escalation and significant economic repercussions.

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