Following his remarks that Detroit's Big 3 were enthusiastic about the tariffs, Trump engages with the Big 3 and delays the implementation of the tariffs | Carscoops

      This marks the second instance within two months where Trump has proposed auto tariffs, only to retreat once more.

      Currently, the Trump administration is 'pausing' tariffs on automobiles coming from Mexico and Canada.

      This decision follows various contradictory comments made by Trump and his team. It now seems that the influence of the Big Three automakers contributed to this change in direction.

      In what seems to be a complete reversal from Donald Trump’s remarks less than a day ago, tariffs specifically for automobiles will not take effect today. White House spokesperson Karoline Leavitt stated, “We spoke with the big three auto dealers. We will provide a one-month exemption on any autos arriving via the [U.S.-Mexico-Canada Agreement].”

      During his State of the Union address last night, Trump expressed a conflicting opinion, claiming he had “spoken to the majors today, all three, the top people, and they’re so excited [about the policies and tariffs].” Clearly, they were not, as the U.S. will not impose tariffs on automotive goods from Mexico or Canada for the time being.

      For clarity, here’s a complete excerpt of President Trump’s comments on the automotive sector without alteration:

      “We are going to have growth in the auto industry like nobody has ever seen. Plants are opening up everywhere. Deals are being made — things that have never been seen. That’s a result of the election win and tariffs. It’s a beautiful word, isn’t it?

      That, along with our other initiatives, will enable our automotive industry to truly thrive. It’s going to thrive. I spoke to the majors today, all three, the top executives, and they’re really enthusiastic. In fact, several car companies have already declared intentions to build large automobile plants in America, with Honda just announcing a massive facility in Indiana, one of the largest globally. This is happening since our significant victory on Nov. 5, a date that should hopefully be recognized as one of the most crucial in our nation’s history.”

      According to Reuters, Trump also engaged in discussions today with the CEOs of Stellantis, General Motors, and Ford, who expressed the desire to increase U.S. investments but simultaneously sought “certainty regarding tariff policies and vehicle emissions regulations.” The outcome of that conversation led to the temporary pause on automotive tariffs.

      Other tariffs, however, did take effect today, including a 25 percent tariff on goods from Mexico and Canada, and a 20 percent tariff on goods from China. It is worth acknowledging that Trump correctly noted that some companies have announced intentions for U.S. manufacturing since his inauguration.

      Notably, Trump had previously threatened Canada and Mexico with auto tariffs a month ago, only to delay them by 30 days. Now, he has repeated that behavior once more.

      Expect to revisit this topic in a month when the situation is likely to repeat itself.