President Donald Trump met with General Motors CEO Mary Barra to discuss the automaker’s investment plans in light of the ongoing tariff war. Trump and Commerce Secretary Howard Lutnick have expressed the desire for the automotive industry to increase assembly and production of parts within the United States. Last week, Trump temporarily exempted automakers from 25% tariffs on Canada and Mexico, provided they adhered to existing free trade rules. Following discussions with Barra, Ford CEO Jim Farley, and Stellantis chair John Elkann, Trump mentioned a potential $60 billion investment from GM.

Uncertainty remains regarding the timeline for any new spending, as automakers stress the need for clarity on tariffs and vehicle emissions policies before committing to significant changes in their North American investment plans. Despite concerns raised by industry stakeholders about the impact of tariffs on steel and aluminum, including potential cost increases for suppliers, automakers are aligning with Trump’s vision for a robust American manufacturing base and economy.

With looming threats of reciprocal tariffs on imports from Europe, Japan, and South Korea, the automotive industry faces a complex landscape of trade dynamics and policy considerations. As the situation evolves, stakeholders navigate the challenges of balancing global trade interests with domestic manufacturing priorities.