Trump postpones some auto tariffs after pressure from Detroit automakers.

(Reuters) – US President Donald Trump has agreed to postpone for one month the application of tariffs on some vehicles manufactured in North America, following a call with the CEOs of General Motors (GM), Ford and the president of Stellantis, the White House reported on Wednesday.

Automakers pressured Trump to temporarily suspend the 25% tariffs on vehicles from Mexico and Canada that comply with the rules of origin of the United States-Mexico-Canada Agreement (USMCA), signed in 2020. The decision will benefit both American automakers and foreign manufacturers that meet these guidelines.

"We will grant a one-month exemption for any automobile entering the United States under USMCA rules... so they will not be at a disadvantage," said White House press secretary Karoline Leavitt. "However, reciprocal tariffs will still go into effect on April 2nd."

Automakers have pledged to increase investments in the U.S. automotive industry, but they want assurances regarding the government's tariff and environmental policies. Sources say Trump could still impose new tariffs on April 2nd, which could have a major impact on the country's automotive production.

The North American automotive supply chain is highly integrated between the United States, Canada, and Mexico, with parts crossing borders at various stages of manufacturing. This process exposes automakers to multiple tariffs, depending on the origin of the components.

Participating in the call on Tuesday were CEOs Mary Barra (GM) and Jim Farley (Ford), as well as Ford's executive chairman, Bill Ford, and Stellantis' president, John Elkann.

The automakers did not officially comment, but Stellantis informed its dealers that it is willing to expand investments in the U.S. The White House also did not issue any further statements. Following the news, Ford shares rose nearly 4% on Wednesday, while GM shares climbed 5%.

The decision to restrict tariff relief only to vehicles that comply with USMCA rules may affect some foreign automakers that chose to pay the 2,5% tariff to export vehicles from Mexico to the US, instead of following the regulations of the free trade agreement.

In his speech to Congress on Tuesday, Trump stated that he spoke with top executives from the three Detroit automakers and that tariffs and other policies will boost growth and allow the auto industry to "thrive again."

Chinese automaker BYD announced on Tuesday that it raised nearly $5,6 billion in a share sale.

Stellantis said it needs more time before making major changes. "We are prepared to work with the Trump administration to support new investments in our U.S. production, but we need time to make these changes without negatively impacting our business and our customers," the company said in an email seen by Reuters.

Last week, automakers also voiced their concerns to Commerce Secretary Howard Lutnick during a virtual meeting.