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Trump opens the door to exempting eggs from tariffs levied on Canada and Mexico

David Catanese, The Charlotte Observer on

Published in Political News

WASHINGTON — First autos, next eggs?

The White House said Wednesday that President Trump could consider a carve-out exempting eggs from the tariffs he’s placed on Mexico and Canada, following the announcement he granted a temporary reprieve from taxes on automobiles after pressure from the U.S. industry.

“The president is open to hearing about additional exemptions. He always has open dialogue,” said White House press secretary Karoline Leavitt, responding to a question regarding the breakfast staple.

The partial but abrupt pullback of his economic plan is an example of the high amount of volatility embedded in Trump’s trade policy that has already spooked business leaders and roiled the Dow Jones Industrial average. But it also signaled a certain degree of flexibility in the president, who sees tariffs as a negotiating tool for more border security but is open to persuasion by titans of U.S. industry.

The U.S. imports about $43 million in eggs from Canada and prices have risen sharply to nearly $5 a dozen domestically — nearly double the cost from 2023.

Democrats have been warning that Trump’s tariffs will increase prices on most goods and the stock market initially reacted negatively to his plan, before rebounding Wednesday on the news of the relief.

“Remember, about 40% of the [car] parts that are in American cars come from Canada. But also housing, and groceries and food. Beef, dairy, eggs,” said Senate Democratic Leader Chuck Schumer.

Leavitt confirmed at Wednesday’s White House press briefing that after speaking with leaders from the big three U.S. automakers — Stellantis, Ford and General Motors — Trump permitted a one-month tariff exemption from any vehicle imports coming from Canada or Mexico, “so they are not at an economic disadvantage.”

Trump’s 25% tariffs on products from Canada and Mexico went into effect hours before the president’s address to a joint session of Congress Tuesday night.

 

Leavitt reiterated that “reciprocal tariffs will still go into effect on April 2,” leaving automakers four weeks to figure out production plans, supply chain adjustments and future investments.

Trump believes tariffs will make the U.S. more prosperous by forcing companies to locate physical plants back domestically, reinvigorating the country’s manufacturing base.

He leaned into this argument during his congressional address Tuesday night, mentioning the word “tariff” 20 times, according to the official transcript.

“They will come because they won’t have to pay tariffs if they build in America,” Trump asserted of businesses operating outside the country. “Tariffs are about making America rich again and making America great again … There’ll be a little disturbance, but we’re OK with that.”

The private, nonpartisan Peterson Institute calculates Trump’s tariffs on Canada, Mexico and China would cost American households an average of $1,200 per year. And even Commerce Secretary Howard Lutnick acknowledged in an interview Wednesday that “there will be some high prices on certain products” for a short period of time.

But critics said that explanation isn’t reassuring given how long it will take for tariffs to have Trump’s intended effect.

“I would adjust my stock portfolio to assume that we are going to see significant global trade disruptions,” said Matthew Yglesias, a liberal policy analyst who runs the Slow Boring Substack.


©2025 The Charlotte Observer. Visit at charlotteobserver.com. Distributed by Tribune Content Agency, LLC.

 

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