Donald Trump, the apparent flip-flopper-in-chief, has decided to delay the automotive portion of his 25 percent tariffs that he imposed on Canada and Mexico yesterday. They’ll now take effect a month from now, at the request of multiple automakers. This makes the United States look very strong and well-run, trust me.
“We spoke with the big three auto dealers. We’re going to give a one-month exemption on vehicles coming through [the U.S.-Mexico-Canada Agreement,]” White House spokesperson Karoline Leavitt told reporters, according to Politico.
In 2024, U.S. auto trade with its neighbors to the north and south accounted for about $345 billion — $120 billion represented its deals with Canada, and $225 billion with Mexico, Politico reports. The majority of the vehicles and auto parts built in Canada or Mexico enter the U.S. duty-free because of the U.S.-Mexico-Canada Agreement trade pact.
It’s still a mess
Even with this carve-out, Trump’s 25 percent tariffs on Canada and Mexico still cover huge swaths of imports. Of course, the 20 percent tariff on Chinese imports remains unchanged, according to Axios. This uncertainty is shaking some companies’ confidence in both the U.S. and Trump. Are you folks tired of all this winning yet?
Some assert that this uncertainty is what is actually hurting the economy, even more so than the tariffs. Commerce Secretary Howard Lutnick said the sectors spared from these tariffs might end up being roped into a broader tariff announcement in early April, but who the hell knows anymore?
