Ford, GM and Stellantis urge White House to lift tariffs on Canada and Mexico

The fight here is about auto tariffs, but really it is about whether North America still counts as one car factory. Ford, GM and Stellantis are pushing the White House not to blow up the USMCA system that lets parts and vehicles move across the U.S., Canada and Mexico without new border taxes. The gap is obvious — Washington says it wants more U.S. production, but Detroit’s supply chain already works as a three-country machine. What changed is that the industry has now made that argument publicly and directly, after months of tariff shocks and partial walk-backs. ### What are they asking for? They are not asking for a free pass on every import. They are asking the administration to keep the USMCA framework intact for autos — basically, if a vehicle or part qualifies under the North American trade pact, don’t hit it with the same tariffs aimed at non-USMCA trade. The appeal came through major industry groups representing Ford, GM, Stellantis and suppliers, which warned that the agreement is central to U.S. auto production itself, not some side benefit for foreign plants. (whitehouse.gov) ### Why do Canada and Mexico matter so much? Because a “U.S.-made” vehicle is usually not made in one place. Engines, transmissions, stampings, wire harnesses and finished vehicles move back and forth across the border during production. That is not a loophole — it is the design. The White House itself acknowledged this in March when it carved out USMCA-qualifying goods from the Canada and Mexico tariffs to avoid hitting the auto industry too hard. (msn.com) ### Didn’t Trump already give automakers relief? Yes — twice, in effect. First, on March 6, the administration exempted goods from Canada and Mexico that claim and qualify for USMCA preference. Then on March 26, it imposed a 25% tariff on imported vehicles and certain parts under Section 232, but gave USMCA-compliant autos a way to pay the tariff only on their non-U.S. content, while compliant parts stayed tariff-free until a process is built. That is a big reason Detroit thinks more carve-outs are still negotiable. (whitehouse.gov) ### So what is the problem now? Uncertainty. Tariffs keep arriving in layers, then getting softened, delayed or partially refunded. On April 29, Trump signed another order to reduce “stacking” — the situation where autos could get hit by multiple 25% levies at once — and offered temporary reimbursements for parts in U.S.-assembled vehicles. That helped, but it also showed how unstable the rules still are. Carmakers can deal with bad policy more easily than shifting policy. (whitehouse.gov) ### Why are Ford, GM and Stellantis especially exposed? Because the Detroit Three are deeply tied to Canada and Mexico in a way many people underestimate. Stellantis already paused production at plants in Canada and Mexico in April as it adjusted to the tariff hit. Analysts have also warned that Detroit is among the most vulnerable because its highest-volume trucks and SUVs rely on cross-border parts flows even when final assembly happens in the U.S. (cnbc.com) ### Is this really about jobs? Yes — but not in the simple “imports bad, domestic good” way. The industry’s point is that tariffs on Canadian and Mexican inputs can raise the cost of building cars in Michigan, Ohio or Kentucky. A border tax on a transmission or engine component does not magically create a U.S. supplier overnight. Sometimes it just makes the whole finished vehicle more expensive and less competitive. (cnbc.com) ### Why is the White House still pushing tariffs then? Because the administration is using several tariff tools for different goals at once — border security pressure on Canada and Mexico, and national-security protection for the domestic auto base. That is the catch. The political message is “build here.” But the existing industrial reality is “we already build here, with parts moving across three countries.” Those two ideas overlap, but they are not the same thing. (whitehouse.gov) ### What should readers watch next? Watch whether the administration extends USMCA treatment, narrows the parts rules, or expands reimbursement mechanisms. April already proved that Detroit lobbying can move policy at the margins. The bottom line is simple — Ford, GM and Stellantis are trying to stop Washington from taxing the supply chain they already use to build “American” cars. (cnbc.com) (whitehouse.gov)