Following discussions with the “Big Three” US automakers -- Stellantis, Ford and General Motors -- Trump decided to “give a one-month exemption on any autos coming through USMCA,“ White House Press Secretary Karoline Leavitt said, referring to the North American free trade pact.
Wall Street stocks rallied after the announcement, with shares of the three automakers each surging about six percent or more.
But prospects of wider relief were dampened after Trump's call with Trudeau. The US leader said he was unconvinced that Ottawa had done enough to address Washington's concerns over smuggling of the dangerous drug fentanyl.
On social media, Trump accused Trudeau of using the dispute to “stay in power,“ but noted their discussion ended in a “somewhat” friendly manner.
Ottawa swiftly announced retaliatory levies, while Mexican President Claudia Sheinbaum plans to unveil her response at a mass rally on Sunday.
More exemptions?
These include products like avocados, strawberries, electronics and gasoline.
Trump said Tuesday that tariffs would bring “a little disturbance” to the world’s biggest economy.
But she added of tariffs: “The president is open to hearing about additional exemptions.”
Trump's tariffs on Mexico and Canada are a heavy blow given that the three countries have a trade pact -- which the US president renegotiated in his first term.
Sheinbaum said Wednesday that Mexico has to take key decisions for its future, adding that “if necessary, other trading partners will be sought.”
She earlier vowed retaliatory action and called for supporters to gather in Mexico City's main square on Sunday to hear details on her government's response.
Trump has vowed tariffs targeting friend and foe to remedy practices deemed as unfair, slamming the European Union particularly.
France's President Emmanuel Macron called planned US tariffs on European products “incomprehensible,“ adding Wednesday that he hoped to “dissuade” Trump from them.
The duties pile atop existing ones on Chinese products.
Economists warn that tariff hikes stand to bog down economic growth and add to US inflation.
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