US weighs one-month delay of auto tariffs on Canada, Mexico

The major Detroit automakers have aggressively sought to halt or revise President Donald Trump’s tariffs over concerns about the potentially catastrophic effects. Carmakers and experts have warned that a rise in costs from the 25% tariffs imposed on US neighbors this week could send auto prices up by thousands of dollars almost immediately and seize up supply chains.

Commerce Secretary Howard Lutnick has hinted in recent days that exceptions to the initial tariffs were under consideration. He told Bloomberg Television that changes could be announced on Wednesday, including a potential reprieve for the auto sector, without offering specifics. Part of the reason for a reprieve would be to buy time for the automakers to come up with plans to move more investment and production to the US, a key Trump demand, some of the people said.

Another White House trade adviser, Peter Navarro, declined to say during a CNN interview Wednesday whether auto exemptions were coming. “I don’t bargain on the public airwaves,” he said.

Any delay would tee up another crossroads next month, when Trump is planning a new wave of tariffs, including on auto imports specifically, beginning as soon as April 2.

US car companies have pushed for an exemption for vehicles made in North America that adhere to parts-sourcing rules under USMCA, the trade deal with Canada and Mexico that Trump negotiated in his first term.

Ford Chief Executive Officer Jim Farley has been among the most vocal on the matter, saying last month that the tariffs would be “devastating” for American automakers and “blow a hole” in the industry.