Canada’s manufacturing sector has been given some relief as U.S. President Donald Trump granted a one-month tariff exemption for imports of motor vehicles and related parts.
The stocks of General Motors (GM), Ford Motor Co. (F) and Stellantis (STLA) each rose more than 5% on news of the tariff pause.
The one-month pause comes after Trump spoke with the automakers and Canadian Prime Minister Justin Trudeau.
News of the reprieve for automakers is a relief given how integrated the industry is between the U.S., Canada and Mexico.
Ford CEO Jim Farley has warned that 25% tariffs on imports from Mexico and Canada would be devastating for the North American automotive sector.
U.S. Commerce Secretary Howard Lutnick has indicated that there might be more wiggle room on tariffs moving forward.
Speaking to Fox News, Lutnick said that there could be a one-month delay on tariffs for industries that are abiding by the United States-Mexico-Canada Agreement on trade.
The U.S. Commerce Secretary also said that the Trump administration is willing to negotiate with Canada and Mexico on various import tariffs and meet America’s neighbors “in the middle” on trade.
Late on March 5, President Trump said that his administration might be willing to exempt certain agricultural products from tariffs imposed on Canada and Mexico, though no specifics have been provided.
In a television interview, U.S. Agriculture Secretary Brooke Rollins said that “everything is on the table” and she is “hopeful” that the administration can provide quick relief for the agricultural sector.
However, both Prime Minister Trudeau and Ontario Premier Doug Ford have said that all of Canada’s reciprocal tariffs and measures will remain in place until all U.S. duties are lifted.
“There is no halfway,” said Premier Ford at a news conference.
