President Donald Trump has delayed tariffs on cars imports in Canada and Mexico for a month after the applications of the executives of the three large car manufacturers: General Motors, Ford and Stellantis, with the expectation that they transfer any operation on the United States on April 2.
The relief, which Political First, it was reported less than two days after Trump issued 25% tariff North America Commercial Agreement (Sometimes characterized as NAFTA 2.0) negotiated during its first mandate.
Automobile manufacturers have complex supply chains and operate several manufacturing facilities in Mexico and Canada. For example, GM produces its Chevy equinox in Mexico and Canada, and both the Ford SUVs and the Dodge Chargers of Stellantis are made in Ontario. Multiple automotive suppliers also have factories in the two countries.
Automobile prices are already in historical maximums, and tariffs threaten to send the prices of stickers that are triggered up to $ 12,000, according To Jeff Schott, a senior member of the Peterson Institute of International Economics, who was interviewed by Detroit Free Press. That could lead to a lower demand, leaving the concessionaires trapped with unsechible cars in their lots.
In a speech to Congress on Tuesday, Trump urged manufacturers to move their operations on land. The White House Press Secretary, Karoline Leavitt, said in a <a target="_blank" href="https://x.com/kaitlancollins/status/1897377536104882472″ target=”_blank” rel=”noreferrer noopener nofollow”>instructions On Wednesday that Trump expects that GM, Ford and Stellantis transfer the production to the USA. Before the tariffs begin at the end of the month.
“He told them they should get into him,” Leavitt said.
Ford CEO, Jim Farley, said last month in an investor talk, the company does not have an excess capacity in its plants to change production. Farley said Ford could resist short -term tariffs, but if they persisted, “they would blow a hole in the American industry that we have never seen.”
Until February, almost half of all new vehicles sold in the US.
This article has been updated with information from the White House Secretary.
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