Trump Pauses Tariffs for Autos as Trudeau Call Yields No Breakthrough

AFP/APP

Washington: Automakers received a temporary reprieve Wednesday from US President Donald Trump’s tariffs targeting Canada and Mexico, as concerns mounted over consumer impacts and talks with Canadian Prime Minister Justin Trudeau yielded no immediate breakthrough.

Following discussions with the “Big Three” US automakers—Stellantis, Ford, and General Motors—Trump decided to “give a one-month exemption on any autos coming through USMCA,” White House Press Secretary Karoline Leavitt said, referring to the North American free trade pact.

“They made the ask, and the president is happy to do it,” Leavitt told reporters.

However, prospects of wider relief were dampened after Trump’s call with Trudeau, with the US leader saying he was unconvinced Ottawa had done enough to address Washington’s concerns over illicit fentanyl.

Canada contributes less than one percent of fentanyl to the United States’ illicit supply, according to Canadian and US government data. But Trump has shrugged off these figures.

On social media, Trump accused Trudeau of using the dispute to “stay in power,” but added that their discussion ended in a “somewhat” friendly manner.

Trump’s sharp 25 percent tariffs on US imports from Canada and Mexico—with a lower rate for Canadian energy—kicked in Tuesday, sending global markets tumbling and straining ties between the neighbors.

Ottawa swiftly announced retaliatory levies, while Mexican President Claudia Sheinbaum plans to unveil her response at a mass rally on Sunday.

The US president has cited illegal immigration and fentanyl trafficking in imposing tariffs, though he frequently lambasts alleged trade imbalances when discussing levies.