Canadian automakers received a temporary reprieve Wednesday from U.S. President Donald Trump’s 25% tariffs on vehicle imports.

A White House official said the U.S. government has delayed their implementation by one month. Automakers and parts manufacturers had warned that the tariffs would force Canadian vehicle and parts plants to shut down within a week of taking effect.

The tariffs have also raised concerns that several planned Canadian EV and battery plants could be delayed or scrapped, depending on how long the U.S.-Canada trade war lasts.

White House Press Secretary Karoline Leavitt confirmed the exemption during a press briefing when asked whether Trump had consulted with major automakers about potential relief.

“We are going to give a one-month exemption on any autos coming through [the U.S.-Mexico-Canada Agreement],” Leavitt told reporters, adding that reciprocal tariffs are still scheduled for April 2. “But at the request of the companies associated with USMCA, the president is giving them an exemption for one month so they are not at an economic disadvantage.”

Industry leaders warn of economic fallout

Brian Kingston, president and CEO of the Canadian Vehicle Manufacturers’ Association, cautioned that the tariffs could cause lasting damage to the industry.

“U.S. tariffs implemented [Tuesday] will do significant damage to the highly integrated North American automotive industry,” Kingston said in a statement. “This will undo over 60 years of integration that has fostered a globally competitive automotive industrial base.

“Given the importance of the automotive industry to the U.S., Canada, and Mexico, the tariffs will have negative economic consequences. We are calling for an immediate lifting of the tariffs.”

Huw Williams, a representative of the Canadian Automobile Dealers Association, said the tariffs could cripple North American production and urged U.S. automakers to push back against the measures.

“There’s no doubt that these tariffs are bad for automotive consumers, they’re bad for the auto industry, bad for car dealers, and they’re bad for the economies on both sides of the border,” Williams told CTV News Channel. “We’re hoping that reasonable heads prevail on this, particularly in the United States.”

Ontario’s Response

Despite the one-month delay, Ontario Premier Doug Ford’s office stated it will proceed with countermeasures against the U.S.

The province is considering several retaliatory actions, including cancelling a $100-million deal with Elon Musk’s Starlink Internet service. The Liquor Control Board of Ontario has already started pulling U.S. alcohol from its stores’ shelves.

The province is also barring U.S. companies from billions in provincial contracts and reviewing existing agreements with American firms for potential termination.

Ford has also threatened to impose a 25% export tax on Ontario electricity sent to New York, Michigan, and Minnesota—powering 1.5 million homes and businesses in those states.

Photo: Waterloo EDC