President Donald Trump has granted a one-month exemption on his new tariffs on imports from Mexico and Canada for U.S. automakers. This decision follows discussions between Trump and leaders of major automakers, including Ford, General Motors, and Stellantis. The temporary pause aims to alleviate concerns that the newly initiated trade war could negatively impact domestic manufacturing. White House press secretary Karoline Leavitt stated that Trump urged automakers to invest and shift production to the United States to avoid tariffs. The tariffs, which also target China, are intended to address illegal immigration, fentanyl smuggling, trade imbalances, and budget deficits. Despite this exemption, Canada remains resolute in its retaliatory tariffs, with Ontario Premier Doug Ford emphasizing the potential for assembly line shutdowns within ten days. Following the announcement, shares of major automakers surged by up to 6%. However, this reprieve only postpones broader economic challenges set to unfold by April 2, when Trump plans to impose reciprocal tariffs. Other industries are also expected to seek similar exemptions, highlighting the economic and political complexities arising from these measures. Canadian Prime Minister Justin Trudeau has refused to lift retaliatory tariffs unless Trump withdraws his taxes on Canadian imports. Meanwhile, Mexico plans to announce countermeasures soon, and China has responded with tariffs on U.S. farm exports. — news from HuffPost
