Trump Exempts USMCA Auto Parts From Tariffs

President Donald Trump has revised his administration's auto tariff policy, exempting auto parts that comply with the US-Mexico-Canada Agreement (USMCA/CUSMA) from the planned 25% tariffs. Updated guidance from U.S. Customs and Border Protection clarified that eligible Canadian and Mexican auto parts will not face the new tariffs, alleviating concerns among North American automakers and suppliers about supply chain disruptions and job losses. The policy shift came after pressure from car manufacturers and industry groups, who warned that the tariffs could raise costs and reduce manufacturing activity. Ford CEO Jim Farley expressed support for the revisions but called for broader trade policies to boost the sector. Despite the exemption, tariffs on non-compliant parts and vehicles remain, with manufacturers such as Stellantis and General Motors expecting continued financial impacts. The exemption is widely seen as a temporary measure to support the auto industry during ongoing regulatory changes.