White House says one-month exemption for any autos in the USMCA

The White House confirms many earlier reports/rumors that autos would be given a one-month exemption under the USMCA.

“We spoke with the big three auto dealers. We are going to give a one-month exemption on any autos coming through USMCA. 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.

On Canada, the spokeswoman said Trump sees an increase in fentanyl flows through the Canadian border and there needs to be repercussions for that.

The White House also said that autos would be subject to reciprocal tariffs but there currently are no tariffs on autos in the USMCA so that’s a bit of a confusion statement, though certain amounts of foreign parts are allowed in autos.

This article was written by Adam Button at www.forexlive.com.