President Donald Trump delayed tariffs on importing cars from Canada and Mexico for a month after executives from three major automakers (GM, Ford and Stratts) demanded that they expect automakers to move any automaker to the U.S. by April 2.
Probation, which one politics First reported that less than two days after Trump imposed a 25% tariff on all goods in U.S. neighbors, he had previously exempted taxes in neighboring countries. North American Trade Agreement (Sometimes characterized by NAFTA 2.0) Negotiation took place during his first term. The exemption applies to USMCA-compliant automakers Wall Street Journal.
Several automakers, including the Big Three, have complex supply chains and operate several manufacturing facilities in Mexico and Canada. For example, GM makes its Chevrolet Equinox in Mexico and Canada, both of Ford’s Lincoln Natilos SUVs and Stralantis’ Dodge Chargers are made in Ontario. Several automobile suppliers also have factories in these two countries.
Car prices are already at all-time highs, and tariffs could cause label prices to soar as much as $12,000, according to Jeff Schott, a senior researcher at the Peterson Institute for International Economics, was interviewed by Detroit Free Press. This can lead to less demand, putting dealers in unbearable cars.
In a speech to Congress on Tuesday, Trump urged manufacturers to act on the shore. White House Press Secretary Karoline Leavitt briefing On Wednesday, Trump expected GM, Ford and Strattis to transfer production to the U.S. before tariffs began at the end of the month.
“He told them they should keep moving forward,” Levitt said.
Ford CEO Jim Farley said in an investor conversation last month that the company does not have too much capacity to transfer production in its factories. Farley notes Ford can bear tariffs in the short term, but if they persist, they “will blow up a hole in the American industry we have never seen before.”
By February to February, nearly half of all new cars sold in the U.S. were built in the U.S., but 17.4% of them were built in Mexico and 7.4% were built in Canada, according to Edmunds.com.
“Since President Trump’s successful USMCA signing, Ford has invested billions in the U.S. and invested billions in the future to invest in American workers and ensure that all our vehicles are USMCA-compliant.” statement From Ford. “We will continue to have a healthy and candid dialogue with the government to help our industry and American manufacturing achieve a bright future.”
This article has been updated with information from the White House Press Secretary and Ford’s statement.
