President Trump gave a one-month tariff reprieve to auto makers on Wednesday, a day after his 25% tax on imports from Mexico and Canada took impact. Everybody else will nonetheless pay. Welcome to the Trump tariff thrill journey, the place you by no means know what’s going to occur subsequent.
Inventory costs surged Wednesday after official information of the auto reprieve, which had been signaled by Commerce Secretary Howard Lutnick. GM and Ford shares jumped particularly. That is the second time Mr. Trump has blinked on tariffs, and buyers might determine he’ll do it once more in a month.
Don’t guess the mortgage. White Home press secretary Karoline Leavitt mentioned the one-month exemption is to make sure U.S. auto makers are “not at an financial drawback” earlier than the President’s tariffs on auto imports from different international locations take impact on April 2.
The exemption may be lower than meets the attention. In line with the White Home assertion, the exemption will apply to vehicles imported from Mexico and Canada. Which means producers might nonetheless get whacked with tariffs on components and supplies that cross the border, which might add hundreds of {dollars} to the price of every automobile.
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