Trump held call with GM, Ford CEOs on potential auto tariff delay

President Donald Trump held a call Tuesday with the CEOs of General Motors and Ford and the chair of Stellantis to discuss the potential of delaying tariffs on North American-built vehicles by 30 days, two sources told Reuters.

Automakers have offered to boost U.S. auto investments but want certainty about tariff and environmental policies, the sources added, noting that Trump could on April 2 impose additional tariffs that could drastically impact U.S. auto production. The North American auto supply chain is highly integrated through the United States, Canada and Mexico, as parts cross the border in various stages of manufacturing that could expose car companies to multiple tariffs.

GM CEO Mary Barra, Ford CEO Jim Farley along with Ford executive chairman Bill Ford and Stellantis chair John Elkann told part in the call. The automakers have urged Trump to waive 25% tariffs on Mexico and Canada on vehicles that comply with the 2020 U.S.-Mexico-Canada Agreement's rules of origin.

The automakers declined to comment. Stellantis told dealers it was willing to expand U.S. investment. The White House did not immediately comment. Ford shares rose nearly 4% on Wednesday, while GM was up 5%.

Limiting the relief to vehicles that are in compliance could hit some foreign automakers that have opted to pay the 2.5% tariff to export vehicles from Mexico to the United States rather than comply with the North American free trade rules.

Trump, in his congressional address on Tuesday, said he had spoken to top executives at the Detroit Three automakers that day and said tariffs and other policies will result in higher growth and "allow our auto industry to boom."

Stellantis said it needs time before making major changes.

"We are prepared to work with the Trump administration to support further investment in our U.S. manufacturing footprint but we need time to make these changes without negatively impacting the business and our customers," Stellantis said in an email seen by Reuters.

The automakers also pitched the idea to Commerce Secretary Howard Lutnick in a virtual meeting last week.