Donald Trump is to exclude carmakers across North America from the pain of US tariffs levelled against Mexico and Canada, following apparent pressure from motor bosses.
The White House confirmed the concession was made after the president spoke to the bosses of Ford, General Motors and Stellantis.
There will be an exemption of at least a month on vehicles made across the continent though “reciprocal” tariffs are still planned from April.
Manufacturers have complained of multiple tariff hits across their supply chains through flows of parts.
The spike in costs poses a big risk to sales as customers are asked to pay more to help compensate for the sanctions.
Automakers’ share prices have been among the worst hit since Mr Trump took office again in January.
That is because the complicated nature of their operations can see a single component cross a border multiple times during the production process.
The car bosses, according to Reuters news agency sources, pledged additional US investment but wanted clarity on tariffs ahead and pushed for rules of origin to limit costs from cross-border transit.
Mr Trump urged them to shift their operations to the United States, according to a White House statement.
The tariff concession marked the first compromise on the trade issue since the president signalled, on Tuesday, that there would be no U-turns only more tariffs after Canada said it would respond in kind.
There have been growing signs this week that corporate America is uneasy, at best, with the imposition of the 25% tariffs against both Canada and Mexico.
Those US neighbours, along with China,…
