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The pause was confirmed at a news briefing by White House Press Secretary Karoline Leavitt on Wednesday, Mar. 5. The move came one day after Trump officially placed 25 percent tariffs on Canadian and Mexican goods while raising tariffs on Chinese imports to 20 percent.
The country's "Big Three" automakers — Stellantis (formerly Chrysler), Ford, and General Motors — talked with Trump about the pause.
"They requested the call, they made the ask, and the President is happy to do it," said Leavitt. "It's a one-month exemption."
The reciprocal auto tariffs will now go into effect on Wednesday, Apr. 2. The exemption applies to vehicles coming into the US through the existing United States-Mexico-Canada Agreement (USMCA).
Trump and Canadian Prime Minister Justin Trudeau also spoke on March 5. The two leaders discussed ways to de-escalate the trade war and continue securing their nations' border.
On his social media platform Truth Social, Trump continued blaming Canada for fentanyl coming into the US.
"I told him that many people have died from Fentanyl that came through the Borders of Canada and Mexico, and nothing has convinced me that it has stopped," Trump posted.
Trudeau responded to Trump's repeated claims at a news conference announcing Canada's tariffs on the US on Tuesday, Mar. 4. He said that less than one percent of fentanyl flows into the US from Canada and that less than one percent of illegal US crossings come from Canada.
The prime minister also said Trump is using his fentanyl claims as an excuse for imposing tariffs.
"We don't want this," said Trudeau. "We want to work with you as a friend and ally, and we don't want to see you hurt either, but your government has chosen to do this to you."
Canada has implemented $155 billion in retaliatory tariffs on US goods, $30 billion of which instantly took effect. The immediate duties were put on products like motorcycles, clothing, shoes, appliances, alcohol, coffee, peanut butter, and orange juice.
The remaining $125 billion in tariffs will be placed on items such as electric vehicles, trucks, buses, certain fruits and vegetables, aerospace products, beef, pork, and dairy. Those tariffs will begin after a 21-day comment period.
Mexican President Claudia Sheinbaum said she'll announce her country's counter-tariffs against the US on Sunday, Mar. 9.
"There is no motive, reason, or justification to support this decision that will affect our people and nations," said Sheinbaum. "We have said it in different ways: cooperation and coordination, yes. Subordination and interventionism, no.
"Mexico will be respected. We are equal nations."
China has already imposed new tariffs of up to 15 percent on US agricultural exports, including chicken, pork, soy, and beef.
"If the US has other agenda in mind and if war is what the US wants, be it a tariff war, a trade war, or any other type of war, we're ready to fight until the end," said Lin Jian, spokesperson for China's Ministry of Foreign Affairs. "We urge the US to stop being domineering and return to the right track of dialogue and cooperation at an early date."
Economists warn that the trade wars could disrupt supply chains and drive up costs for American consumers. As of 3:30 p.m., the Dow Jones Industrial Average was down about 816 points from the start of trading on Monday, Mar. 3, although the index started rebounding after the news of the auto-tariff pause.
Retailers are bracing for higher costs on many goods, with Best Buy and Target's CEOs warning that prices for shoppers will likely rise because of Trump's tariffs.
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