In a significant move, U.S. President Donald Trump has paused the imposition of tariffs on automobiles from Canada and Mexico. This decision comes after mounting concerns over consumer impacts and unfruitful discussions with Canadian Prime Minister Justin Trudeau.
Following negotiations with leading American automakersāStellantis, Ford, and General MotorsāTrump announced a one-month exemption for any cars under the USMCA trade agreement, according to White House Press Secretary Karoline Leavitt.
"They made the ask, and the president is happy to do it," Leavitt stated. The announcement led to a boost in Wall Street stocks, with shares of the three automakers each rising by approximately 6%.
The American Automotive Policy Council welcomed the temporary reprieve, applauding the president's decision.
However, a broader relief remains uncertain following Trumpās call with Trudeau, during which the U.S. leader expressed skepticism over Canada's efforts to curb fentanyl smuggling into the United States.
Despite Canadian and U.S. data indicating that Canada accounts for less than 1% of the U.S.'s illicit fentanyl supply, Trump remains unconvinced. His initial tariffs, set at 25%, have already strained ties and affected global markets.
In response, Ottawa quickly announced retaliatory levies, and Mexican President Claudia Sheinbaum is preparing to unveil her country's response at an upcoming rally. While Trump cites illegal immigration and drug trafficking as reasons for the tariffs, he also frequently critiques perceived trade imbalances.
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Trump pauses tariffs for autos as Trudeau call yields no breakthrough
cgtn.com
