WASHINGTON — The Big Three automakers were able to secure a month-long tariff exemption on Wednesday after a conversation with U.S. President Donald Trump, but Prime Minister Justin Trudeau wrapped a call to the Oval Office with no such guarantees for Canada.
Trump has granted a one-month exemption for any vehicles coming through the Canada-U.S.-Mexico Agreement on trade, also known as CUSMA.
White House Press Secretary Karoline Leavitt said during a briefing Wednesday afternoon that the move comes after the Big Three automakers — Stellantis, Ford and General Motors — asked for help.
"Reciprocal tariffs will still go into effect on April 2, but at the request of the companies associated with USMCA, the president is giving them an exemption for one month so they are not at an economic disadvantage," Leavitt said, reading from a statement by Trump.
Leavitt told reporters the purpose of the one-month reprieve is to give automakers time to "shift production here to the United States of America where they will pay no tariff, that's the ultimate goal."
She later added that Trump is open to other carve-outs to the tariffs.
Trump followed through on Tuesday with his threat to impose sweeping tariffs on Canada and Mexico, something Trudeau characterized as "a very dumb thing to do" when he announced retaliatory tariffs on $30 billion of American goods the same day.
Canadian goods imported into the U.S. are now subject to 25 per cent tariffs, except for energy which is set at 10 per cent.
Now it appears the White House is willing to temporarily waive the levies on automakers, though officials have not clarified exactly how that will work.
Commerce Secretary Howard Lutnick told Fox News Wednesday afternoon that Trump was also "leaning towards coming up with an idea" that allows a tariff exclusion for Canadian and Mexican markets that are in compliance with the free-trade deal.
He cited the automakers' meeting, saying the companies asked Trump, "If we comply with USMCA (CUSMA), meaning we've got U.S. parts in our cars, can't you help us?"
Lutnick and Vice President J.D. Vance were on the phone with Trump when he spoke with Trudeau Wednesday afternoon for the first time since the trade war kicked off.
Trudeau's office provided no details about what was discussed.
A senior Canadian government official speaking on background said they spoke for 50 minutes and that the two sides would be in close contact throughout the day.
In a post on Truth Social, Trump said Trudeau "called me to ask what could be done about tariffs" and Trump insisted the actions Canada has taken to curb the flow of fentanyl into the U.S. are not good enough.
Trump's executive order that imposed the tariffs cites a national security risk because of illegal migration and fentanyl coming into the U.S. from Canada and Mexico. Trudeau on Tuesday called that a "legal pretext" that has absolutely no justification.
Ontario Premier Doug Ford said Wednesday he is on the same page with Trudeau that Canada will not remove retaliatory tariffs unless all American tariffs are removed, and said a temporary reprieve is not good enough.
Ontario has removed all American booze from liquor stores and banned U.S. companies from $30 billion worth of procurement contracts. Other provinces have enacted similar non-tariff retaliatory measures.
Trump ended his Truth Social post by falsely claiming Trudeau was trying to use the tariff issue to stay in power as prime minister.
"(Trudeau) was unable to tell me when the Canadian Election is taking place, which made me curious, like, what's going on here?" Trump asked in his post.
"I then realized he is trying to use this issue to stay in power. Good luck Justin!"
Trudeau is set to step down from his role as prime minister after the Liberals choose a new leader on Sunday. The next federal election will be held sometime between April and October.
— Written by Kelly Geraldine Malone in Washington and Sarah Ritchie in Ottawa
This report by The Canadian Press was first published March 5, 2025.
The Canadian Press
