US temporarily exempts carmakers from Canada and Mexico tariffs
Getty ImagesU.S. President Donald Trump said he will temporarily exempt automakers from the 25% import tax imposed on Canada and Mexico the day after the tariffs came into effect.
The White House announcement even if Trump continues to blow up Canada because there is not enough to prevent drugs from entering the United States.
“Nothing convinced me that it has stopped,” Trump wrote on social media. After a call with Canadian Prime Minister Justin Trudeau, involving the economic damage caused by new trade tariffs.
Relief news helps boost U.S. stock, which closes higher After two days of decline, the S&P 500 has eliminated earnings since the November presidential election.
The tariff exemption is targeted at North American-made cars that comply with the continent’s existing free trade agreements.
The deal Trump negotiated during his first term stipulates rules for how many cars each country must establish to get tax exemptions.
White House press secretary Karoline Leavitt said Trump imposed a one-month exemption on the auto industry tariffs following the requests from Ford, General Motors and Stratlandis, and those supply chains are spread throughout North America.
Analysts at S&P Global Mobility said the new tariffs are taxes imposed on taxes that commodities enter the country – expected to destroy one-third of North America’s automobile production in a week.
After the announcement, Ford’s stock rose more than 5%, while GM’s stock price rose more than 7%. Stellantis’s stake in the United States grew by more than 9%.
Ms Levitt added: “The President would like to hear about the additional exemptions.”
“He always has open conversations and he will always do what he thinks is suitable for the American people.”
Billions of dollars worth of goods cross the borders of the United States, Canada and Mexico every day, and their economies merge.
Large U.S. retailers have warned that the measures will lead to higher prices for commodities such as avocados within a few days, while economists predict that the recession in Mexico and Canada is triggered by tariffs.
The Canadian Chamber of Commerce warned that despite targeted relief opportunities, affordability will be hurt and business relationships will be affected.
“We’ve seen this movie before. President Trump brought tariffs to the right attitude and then exempted them at once,” said Matthew Holmes, the group’s public policy director. “This is not the way to build a long-term trade alliance.”
Ontario Prime Minister Doug Ford told Canadian media that the one-month probation of the automaker would not change his retaliation plan, which has stopped sales of American liquor in the province.
Trump’s move, and his threat to impose “reciprocity” tariffs on countries around the world, have raised concerns about a broader trade war.
In addition to Mexico and Canada, he also attacked Chinese goods with additional tariffs on Tuesday, raising taxes to at least 20% and prompting the country to retaliate against U.S. exports, including agricultural products.
Canada also affected peanut butter, oranges and wine after Washington’s 25% tariff on two neighbors took effect on Tuesday.
Mexico also said it would respond, including its own tariffs.
“I don’t know where we are and how it ends. I just hope it ends soon,” said Bob Hemesath, an Iowa farmer.
Trump admits his moves could cause short-term economic pain in the United States, but says he wants to protect U.S. industry and promote manufacturing.
His tariffs on goods from two U.S. neighbors and China this week, as a response to immigration and fentanyl crossing the border.
Trump wrote on social media Wednesday that he told Trudeau that the situation has not improved.
“He said it got better, but I said, ‘That’s not good enough’,” Trump said.
Trudeau called Trump’s claims about drugs defending tariffs on his country by “completely false drugs.”
Last year, the United States caught less than 50 pounds of fentanyl on its northern border.
White House officials said Trump still intends to move forward on April 2 and plans to tax the other countries around the world, which he believes is unfair.
“There will be taxes – let’s make it clear – but his idea is that it may be considered giving them a relief to the market part until we are of course April 2,” Commerce Secretary Howard Lutnick told Bloomberg earlier on Wednesday.
