According to the White House, on 5 March 2025, US President Donald Trump has decided to exempt automakers from his 25% tariffs on Canada and Mexico for one month if they follow existing free trade rules.

Following discussions with the three largest US automakers – Stellantis, Ford, and General Motors (also known as the “Big Three”) – Trump granted a one-month exemption on autos under the USMCA trade pact, said White House Press Secretary Karoline Leavitt.

Trump’s tariffs create significant challenges for automakers, who produce vehicles in all three countries and ship parts across North American borders multiple times during production.

However, Trump made it clear he was not ending his trade war with Canada and Mexico as he pressures both countries to curb fentanyl smuggling.

Canadian Prime Minister Justin Trudeau said the situation improved after a call with the US president, but Trump said he remained unconvinced. Official statistics show a small fraction of fentanyl in the US comes across the Canadian border.

In a post on Truth Social, Trump said, “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 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 realised he is trying to use this issue to stay in power. Good luck Justin!”

Earlier, on 30 January 2025, Trump issued an executive order imposing substantial tariffs on major trading partners. The order introduced a 25% tariff on imports from Canada and Mexico, as well as a 10% tariff on goods from China.