The Trump administration announced a one-month deferment of tariffs on cars from Canada and Mexico.

The White House confirmed that President Trump has decided to exempt Mexico and Canada from a 25% tariff on imported cars for a month, promoting the rise in stock prices of the three major U.S. car manufacturers. At the same time, Canada has officially filed a complaint with the World Trade Organization (WTO) to protest the punitive tariffs imposed by the United States on its imports. White House press secretary Leviat said on Wednesday that General Motors Company (GM.US), Ford Motor Company (F.US), and Stellantis NV (STLA.US) have been granted a temporary tariff exemption to avoid being disadvantaged in the market competition. This news boosted investor confidence, with Ford Motor Company's stock rising by 5.81%, General Motors Company by 7.21%, and Stellantis NV (STLA.US) by 9.24%. Stellantis is a car manufacturer based in the Netherlands, with brands including Chrysler, Dodge, Jeep, and Ram. The decision by the Trump administration comes shortly after its meeting with executives from the three major U.S. car manufacturers. Leviat stated, "All cars entering the United States through the USMCA will receive a one-month tariff exemption." The USMCA is a trade agreement negotiated by Trump during his first term. In his speech to Congress on Tuesday night, Trump stated that he had held discussions with executives from the three major car companies that day and said, "We will see unprecedented growth in the automotive industry, factories will reopen, deals will be made, and tariffs will drive the entire industry to thrive." Since Trump announced a 25% tariff on imported cars from Mexico and Canada last month, car manufacturers have been seeking exemptions. They have warned that tariffs will lead to increased manufacturing costs, thereby raising component and vehicle prices. The stock prices of Ford, General Motors Company, and Stellantis have all fallen by an average of about 15% since the presidential election on November 5 last year, with the uncertainty brought by tariffs dragging down the entire industry. Ford Motor Company CEO Jim Farley warned during the company's fourth-quarter earnings call in February that imposing tariffs on Canada and Mexico could significantly increase costs and reduce profits for the entire industry by billions of dollars. Data shows that millions of cars sold in the U.S. market are assembled in Canada and Mexico, with over half of the components of some popular models coming from these two countries. Although the car tariffs on Mexico and Canada have been suspended temporarily, the White House stated that the Trump administration still plans to officially implement retaliatory tariffs on countries that impose tariffs on U.S. products on April 2. U.S. Commerce Secretary Howard Lutnick said in an interview that certain categories of goods may be exempted, and cars may be one of them. Meanwhile, the Canadian government has officially filed a complaint with the WTO, protesting against the 25% punitive tariffs imposed by the United States on its imports. The WTO confirmed on Wednesday that it had received the complaint, with Nadia Theodore, Canada's WTO ambassador in Geneva, stating on social media, "The U.S. decision left us no choice." She emphasized that the Canadian government has formally requested WTO consultations with the U.S. government to resolve the issue of "baseless tariffs." WTO officials confirmed that Canada's complaint is similar to the one previously submitted by China. China and Mexico have also been affected by the 25% tariff policy of the Trump administration, with its trade protectionism measures causing dissatisfaction from multiple countries. It is worth noting that the U.S. government seems to have softened its stance on the issue of tariffs on Mexico and Canada in recent times. U.S. Commerce Secretary Lutnick said in an interview with Fox Business that he had been "in constant phone contact with officials from Canada and Mexico all day," adding, "The president is listening... I believe he will eventually reach a solution with them." Lutnick hinted that the U.S. government may announce related decisions on Wednesday. According to the WTO dispute resolution procedure, after filing a complaint, both parties will first engage in consultations. If an agreement cannot be reached, Canada can request the establishment of a special arbitration panel consisting of 3 to 5 experts. If the ruling is unfavorable, the countries involved can still appeal the decision. Despite the uncertainty surrounding the Trump administration's trade policy, the market remains cautiously optimistic about the prospects for consolidation in the North American automotive industry. Arjun Divecha, head of GMO's emerging market equity, said, "There is clear economic rationale for integration in the North American region." He pointed out that market expectations for tariffs are usually short-term rather than long-term. As a result, Toyota Motor Corp. Sponsored ADR (TM.US) listed on the U.S. stock market has risen by about 6.5%. Toyota Motor Corp. Sponsored ADR exports cars to the U.S. from Mexico, Canada, and Japan, but its stock price has not been severely affected by the U.S. domestic tariff dispute since the presidential election on November 5 last year, having accumulated a 3% increase. This trend may indicate that foreign investors believe that the most serious tariff threats to the automotive industry may have passed.