Trump Takes Steps to Shield Automakers from Tariff Impact | Money News
Donald Trump has decided to exempt car manufacturers throughout North America from the tariffs imposed on Mexico and Canada, reportedly in response to pressure from automobile executives.
The White House confirmed that these concessions followed conversations between the president and the leaders of Ford, General Motors, and Stellantis.
There will be a grace period of at least one month for vehicles produced across the continent.
Automakers have expressed frustrations over facing multiple tariff impacts across their supply chains due to parts flow disruptions.
The increase in costs poses a significant threat to sales, as customers are often required to pay higher prices to offset the effects of the sanctions.
This week has shown increasing signs that corporate America is, at the very least, uncomfortable with the upcoming 25% tariffs on both Canada and Mexico starting Tuesday.
Along with China, facing a 20% tariff, these two nations are among the biggest trading partners with the U.S.
The widespread imposition of tariffs on all goods has been poorly received by investors in the financial markets, who are concerned about potential risks to U.S. profitability.
A closely monitored economic forecast indicated that the looming threat of tariffs since Trump’s electoral victory has severely impacted economic activity and could push the country into recession.
There are increasing reports of boycotts against U.S. products in both Mexico and Canada.
These apprehensions were openly acknowledged by Lawson Whiting, the CEO of Jack Daniel’s parent company Brown Forman, on Wednesday, who remarked that Canadian provinces removing American-made alcoholic beverages from shelves was “worse than a tariff.”
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