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

Investing.com -- The Trump administration is considering a one-month delay on newly imposed auto tariffs for Mexico and Canada, offering a temporary reprieve to automakers, according to a report from Bloomberg.

Industry leaders, including the heads of Ford (NYSE:F), General Motors (NYSE:GM), and Stellantis (NYSE:STLA), are said to have met with administration officials on Tuesday to push for changes. 

According to the report, another meeting is scheduled for Wednesday at the White House to discuss possible relief.

Bloomberg said a White House official speaking on condition of anonymity told them the situation remains fluid. 

Meanwhile, Commerce Secretary Howard Lutnick hinted that adjustments to the tariffs could be announced as early as Wednesday. He told Bloomberg Television that exceptions for the auto sector were under consideration but did not provide specifics.

The Detroit automakers have strongly opposed the 25% tariffs, warning that they could drive up vehicle prices by thousands of dollars and disrupt supply chains. 

Ford CEO Jim Farley previously called the tariffs “devastating” and warned they would “blow a hole” in the industry.

The potential delay would give automakers time to develop plans to shift more production and investment to the US, a key demand from President Trump, Bloomberg reported.

Even if a short-term reprieve is granted, automakers could face further uncertainty. 

Trump is planning another round of tariffs starting April 2, which could further impact North American vehicle production. Automakers have reportedly pushed for exemptions for vehicles that meet USMCA parts-sourcing rules, but it remains unclear if those requests will be granted.