In an aerial view, the new Subaru cars are seated in a storage lot in Auto Warehouse Co. on March 4, 2025 in Richmond, California.
Justin Sullivan | Getty images
Wednesday, the White House announced a North American price exemption for car manufacturers after President Donald Trump spoke earlier with the heads of the head of General Motors,, Ford engine And Stelllantis.
Car manufacturers have urged Trump to give up 25% of prices on Mexico and Canada on vehicles that comply with the original rules of the United States-Mexico-Canotade.
“The reciprocal prices still come into force on April 2, but at the request of the companies associated with the USMCA, the president gives them an exemption for a month so that they are not economic disadvantage,” said press secretary Karoline Leavitt on behalf of Trump.
The spokespersons of the three companies as well as other car manufacturers did not immediately respond to comment on the delay, which only comes only day after the entry into force of the prices.
Leavitt said the president was “open” to the hearing requests of other industries looking for exemptions.
Leavitt also confirmed the “Big 3” that the Detroit car manufacturers asked Tuesday’s call with Trump, who mentioned him during his speech at the Congress later during the day.
On Wednesday, two sources confirmed to CNBC that the CEO of GM, Mary Barra, the president of Stellantis, John Elkann, the CEO of Ford Jim Farley and the president of Ford Bill Ford participated in the call.
The White House said it has given a month’s delay for car manufacturers prices, the cars of which comply with the USMCA, which was negotiated under Trump’s first mandate.
GM, Ford and Stellantis Stocks
The actions of GM, Ford and Stellantis were notably up after the announcement. Stellantis closed on Wednesday on Wednesday 9.2%, followed by GM up 7.2%and Ford by more than 5.8%.
It was not immediately clear if the vehicles will be exempt or if the automotive parts would also be included.
The exemption allows additional preparation and discussions between the White House and the Automobile Industry on the prices. It also aligns more closely with the potential prices of vehicles on imports from outside North America.
Trump previously said that these prices would be confirmed on April 2, in pressure for car manufacturers to invest more in the United States for vehicle production.
“We are going to have growth in the automotive industry as no one has ever seen,” said Trump on Tuesday evening before a joint session of the congress. “It is a combination of victory and prices for the elections.”
Trump wrongly praised a “new” factory investment in Indiana for Honda Motor During his speech on Tuesday evening. The company operates a large assembly plant in the state, but its main major investments were in Ohio.
President Donald J Trump treats a joint congress session as vice-president JD Vance and the president of the Mike Johnson room (R-La) listen to the room of the Maison du Bâtiment du Capitole on Tuesday March 04, 2025 in Washington, DC.
Jabin Botsford | The Washington Post | Getty images
Honda thanked the president on Wednesday for recognizing the company, but confirmed that it “had not announced plans for a new factory in the United States at the moment”.
“We have invested more than $ 3 billion in the manufacture of advanced vehicles in America over the past three years, with a cumulative total of more than $ 24.7 billion,” said Honda in a statement sent by email. “We are impatient to continue investing locally and building quality products in America, as Honda has done for 45 years.”
The American Automotive Policy Council, which represents Ford, GM and Stellantis – which are all strongly affected by prices – earlier this week, vehicles and parts that meet the requirements of the USMCA should be exempt from the increase in prices.
“Our American car manufacturers, who have invested billions in the United States to meet these requirements, should not have their competitiveness compromised by prices that will increase the cost of building vehicle construction in the United States and Style investment in American workforce, while our competitors outside of North America benefit from easy access to our family market”.
Among the managers and car experts, there was a major concern that prolonged prices went quickly in the benefits of the company and the production plans.
The managers of the Automobile Supplier of France Forvia said on Wednesday that the company and its customers, including car manufacturers, had planned various emergency plans for prices. This included work with customers to conclude parts agreements since 25% prices took effect on Tuesday.
“The whole supply chain cannot swallow 25%,” said Forvia CEO Martin Fischer, during a media event. “Cars will become more expensive for consumers if prices continue for a long time.”
S&P Global Mobility predicted about a third of vehicle production in North America on Tuesday could be reduced next week due to prices of 25%.
The data and forecasting company earns 25 car manufacturers produce an average of 63,900 light passenger vehicles in North America per day. The majority of these, around 65%, are assembled in the United States, followed by 27% in Mexico and 8% in Canada.