That didn’t take long.
The White House announced Wednesday it would delay a portion of its 25 percent tariffs on Mexico and Canada to appease automakers whose execs rang President Donald Trump and asked for special treatment.
Press secretary Karoline Leavitt said automobiles and parts that enter the U.S. through its North American neighbors will be exempted from tariffs for one month.
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That carve-out came after executives from America’s largest automakers—General Motors, Ford, and Stellantis—reportedly pleaded with Trump that an extra tax would be debilitating to their business and increase prices for American consumers.
A similar argument could be made for nearly every product entering from Mexico or Canada, but other industries apparently did not complete the required begging.
“The president is giving them an exemption for one month so they are not at an economic disadvantage,” Leavitt said of the country’s so-called Big 3. “They requested the call. They made the ask and the president is happy to do it.”
Leavitt added that Trump is “open to hearing about additional exemptions,” inviting other industry titans to call and kiss the ring if they also want to avoid tariffs.
Wednesday’s announcement is the latest twist in a trade war against Canada and Mexico, who are among America’s biggest allies and economic partners.
Trump has claimed tariffs are necessary to force the U.S. neighbors to crack down on fentanyl being brought across the border. Both countries responded with retaliatory measures, contributing to economic uncertainty that sent the Dow plunging Monday.
Shares of General Motors, Ford, and Stellantis were were up between 4 percent and 9 percent after Wednesday’s announcement, hammering home that it was Trump’s tariffs that lost Americans money on the stock market this week.
The tariffs have been slammed as a “dumb move” by Canadian Prime Minister Justin Trudeau and by business leaders stateside.
Auto industry experts estimate the tariffs, if implemented as now planned in April, will raise the price of a new car by as much as $10,000. Ford CEO Jim Farley said added tariffs will give foreign producers an advantage over their American counterparts who have higher operational costs.
