
Trump pauses tariffs on Mexico and Canada
By onAnnouncements
President Donald Trump paused 25% tariffs on Mexico and Canada for 30 days after each nation agreed to increase border security measures, according to White House press releases posted Monday.
The tariffs would have included an additional 10% on Canadian energy products and were set to start at midnight Tuesday.
Each of the news releases notes that further time is needed for the Trump administration to assess whether the steps taken by Mexico and Canada is sufficient action to alleviate criminal activity on the nation’s northern and southern border.
The Detroit Free Press reported Monday that new vehicle prices could increase by $1,000 to $9,000 or more with the tariffs. An article also says more than 165,000 autoworkers could be laid off, if the tariffs were to remain in place for any considerable amount of time.
Ford Motor Co., General Motors and Stellantis had not provided a comment about the tariffs to the newspaper as of Monday Morning.
“All had said previously, in some fashion, that they believed Trump shares their goal of a strong U.S. auto industry and could make some adjustments to their manufacturing,” the article says.
Alliance for Automotive Innovation CEO John Bozzella told the newspaper Saturday, “Seamless automotive trade in North America accounts for $300 billion in economic value. It not only keeps us globally competitive, it supports auto industry jobs, vehicle choice and vehicle affordability in America. We look forward to working with the administration on solutions that achieve the president’s goals and preserve a healthy, competitive auto industry in America.”
MEMA released a statement Friday opposing the tariffs, which it said would place additional pressure on the supplier industry and impede the ability of supplier companies to grow, invest and operate their businesses.
“Such tariffs would have severe consequences for the U.S. vehicle supplier industry, jeopardizing American jobs, increasing costs for consumers, and undermining the highly integrated North American supply chain that is critical to U.S. competitiveness,” MEMA says in its release.
The release says the tariffs would significantly increase the cost of essential vehicle components, which would be passed to consumers and further disrupt affordability in the automotive sector.
MEMA says Canada and Mexico are the United States’ top automotive trade partners. It says tariffs would force companies to reevaluate supply routes and delay production, as well as discourage further investment in emerging technologies.
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