Whitehouse Press Secretary Announces the Removal of Tariff for Auto Imports

White House Press Secretary Karoline Leavitt speaks during the daily briefing in the Brady Briefing Room of the White House in Washington, DC, on March 5, 2025. (Photo by MANDEL NGAN/AFP via Getty Images)

To ease the 25% tariffs on Mexico and Canada are now in effect, Press Secretary Karoline Leavitt revealed that Trump has approved a one-month exemption on auto imports.

In a Wednesday press briefing, Leavitt stated: “We spoke with the Big Three auto dealers. We are going to give a one-month exemption on any autos coming through USMCA (U.S.-Mexico-Canada Agreement). Reciprocal tariffs will still go into effect on April 2nd.”

Leavitt’s statement follows after President Trump’s 25% tariffs went into effect on Tuesday, sending the stock market plummeting prior to rebounding.

The tariffs were implemented to pressure Mexico and Canada into preventing the mass flow of fentanyl and other illicit drugs from being smuggled into the United States.

The tariffs also incentivize manufacturing companies to produce their products domestically to avoid the high costs of tariffs.

Both Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum have now angrily vowed to introduce retaliatory tariffs of their own, presumably setting the stage for a trade war.

On Wednesday, President Trump provided insight into a conversation he had with Trudeau regarding the tariffs.

“Justin Trudeau, of Canada, called me to ask what could be done about Tariffs. I told him that many people have died from Fentanyl that came through the Borders of Canada and Mexico, and nothing has convinced me that it has stopped,” he stated.

“He said that it’s gotten better, but I said, ‘That’s not good enough.’ The call ended in a ‘somewhat’ friendly manner! He was unable to tell me when the Canadian Election is taking place, which made me curious, like, what’s going on here? I then realized he is trying to use this issue to stay in power. Good luck Justin!” he added.

Meanwhile, Commerce Secretary Howard Lutnick revealed that President Trump is in talks with Mexico and Canada to potentially call off some of the tariffs — as long as some of his demands are met.

“There are going to be tariffs, let’s be clear, but what he’s thinking about is which sections of the market that can maybe, maybe he’ll consider giving them relief,” Lutnick stated. “The president is listening to the offers from Mexico and Canada. He’s thinking about trying to do something in the middle. He’s thinking about it. We’re talking about it.”

Lutnick added that he doesn’t “want anybody to forget, April 2nd is the day that we announce our reciprocal tariffs around the world.”

Tiffany Smith, the vice president of the National Foreign Trade Council, expressed her concerns in regard to companies attempting to make logistical financial decisions amidst the potentially fluid tariff war.

“Obviously a pause is welcome, but this constant ‘on again-off again’ of tariffs is difficult for companies that are trying to make sourcing and pricing decisions in real time. W