The Chevrolet Silverado, one of America’s best selling pickup trucks, received a month-long reprieve Thursday when President Donald Trump announced a delay on tariffs for Mexican imports covered by the United States-Mexico-Canada Agreement trade agreement until April 2.

The decision temporarily shields the iconic vehicle from price hikes that threaten to disrupt its international supply chain and potentially drive its $40,000 to $70,000 sticker price even higher.

Trump announced the delay following a conversation with Mexican President Claudia Sheinbaum. “I did this as an accommodation, and out of respect for, President Sheinbaum,” Trump wrote on Truth Social, citing cooperation on border security and fentanyl trafficking.

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According to CNN, Commerce Secretary Howard Lutnick indicated that Canadian tariffs might also see a similar postponement, though no official announcement had been made by late Thursday.

A senior Canadian government source told CNN that negotiations were ongoing without clarity on whether the tariffs would be lifted.

The stakes remain high for the Silverado. Of the 673,000 units General Motors Co GM produced last year, 31% were built at the company’s factory in Silao, Mexico, and 20% at its Oshawa, Canada plant, according to the Financial Times.

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Even Silverados manufactured at U.S. facilities in Michigan and Indiana rely on cross-border parts including power steering and door trim panels from Mexico, rear lighting from Canada, airbag modules from Germany and center displays from Japan, according to S&P Global Mobility data cited by the FT.

Data collected by Export Genius cited by the FT showed Mexican exports of Silverado components totaled nearly $30 billion last year, with braking systems alone accounting for $4.3 billion.

GM has been preparing for potential tariffs since Trump’s election. According to the FT, CFO Paul Jacobson said at a Wolfe Research investment conference last month that the company had reduced inventory at non-U.S. plants by nearly a third “because the last thing you want is a bunch of finished inventory that… suddenly became 25% more expensive just with the passage of time.”

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The temporary nature of the reprieve leaves automakers in a difficult position. Major manufacturing shifts would require billions in investment, yet companies remain hesitant to commit those resources amid ongoing uncertainty.

The tariff delay represents a significant—if temporary—shift in the administration’s trade approach that had rattled markets, businesses and consumers, according to CNN.

Since taking office, Trump has implemented a staggered approach to tariffs. The President initially announced 25% tariffs on Canada and Mexico would begin Feb. 1, before delaying them several times. The administration also imposed 10% tariffs on Chinese goods on Feb. 4.

For now, the Silverado and other vehicles manufactured within the North American trade zone have breathing room. But with April 2 looming as the next tariff deadline, auto industry executives and supply chain managers face difficult decisions in the coming weeks.

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