Trump gave automakers a month-long reprieve from tariffs to move production to the US

President Donald Trump has delayed by a month the imposition of tariffs on car imports from Canada and Mexico after appeals from the heads of General Motors, Ford and Stellantis. The companies are expected to move production to the United States by April 2, TechCrunch reports.

The postponement came two days after the introduction of 25% tariffs on imports from neighboring countries, which were previously exempt from duties thanks to the USMCA trade agreement (formerly NAFTA 2.0).

Automakers have complex supply chains and manufacturing facilities outside the U.S. For example, GM builds the Chevrolet Equinox in Canada and Mexico, Ford builds the Lincoln Nautilus in Canada, and Stellantis builds the Dodge Charger in Ontario. Numerous auto parts suppliers also operate in these countries.

Experts warn that the new tariffs could raise car prices by up to $12,000, which could reduce demand and leave dealers with unsold cars.

Trump has urged automakers to move production to the U.S. White House spokeswoman Caroline Levitt said the president expects to take action by the end of the month.

Ford CEO Jim Farley noted that the company does not have free capacity to shift production, and long-term tariffs could seriously hit the industry.

According to Edmunds.com, nearly 50% of cars sold in the U.S. were produced domestically, while 17.4% were produced in Mexico and 7.4% in Canada.

Ford said it has already invested billions in the US and is planning new investments as it negotiates with the administration about the future of the industry.