Trump Exploring Tariff Exceptions For Auto Companies, Says They ‘Need A Little Bit Of Time’ Before Making Cars In The US

President Donald Trump on Monday announced that he is exploring carve-outs for auto companies staring at the prospect of 25% tariffs on parts imported from Canada, Mexico, and other countries.

In a press conference at the White House, the President said that in addition to auto parts, he is also considering possible exemptions to tariffs on cars imported into the country.

“I’m looking at something to help car companies with it. They’re switching to parts that were made in Canada, Mexico and other places, and they need a little bit of time, because they’re going to make them here,” Trump told reporters at the White House, according to a report by Bloomberg.

Shares of U.S.-listed automakers surged during Monday’s midday trading session, with Ford Motor Co. (F) and General Motors Co. (GM) gaining more than 4%, while Stellantis NV (STLA) surged nearly 2.8%.

According to Wedbush, Trump’s 25% auto tariffs are expected to raise car prices by $5,000 to $10,000.

The Trump administration’s tariffs on auto parts were initially scheduled to go into effect on or before May 3.

Ford, along with General Motors and Stellantis, is lobbying the Trump administration for tariff relief on imports of certain auto parts, citing the risk of ballooning costs, profit warnings, and layoffs.

On its part, Ford extended employee pricing to all its customers, with benefits worth “thousands of dollars.”

“We understand that these are uncertain times for many Americans. Whether it's navigating the complexities of a changing economy or simply needing a reliable vehicle for your family, we want to help,” Ford said.

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Editor's Note: An earlier version of the story stated that the Trump administration’s auto tariffs were initially scheduled to go into effect on May 3, with specific carveouts for the two neighbors, Canada and Mexico.