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Trump Discusses Possible Tariff Delay with Automakers
Automakers Seek Clarity on Tariffs and Investments
President Donald Trump recently held a call with the CEOs of General Motors, Ford, and the chairman of Stellantis to discuss delaying 25% tariffs on North American-built vehicles for 30 days. Automakers have expressed a willingness to increase U.S. investments but are seeking certainty regarding tariff and environmental policies.
Potential Impact of April 2 Tariff Implementation
The proposed tariffs, set to take effect on April 2, could significantly impact U.S. auto production. Automakers are urging the administration to waive tariffs for vehicles that comply with the 2020 U.S.-Mexico-Canada Agreement (USMCA) rules of origin.
USMCA Compliance and Tariff Exemptions
Officials are considering tariff relief for vehicles that meet USMCA standards. However, this could disadvantage foreign automakers that have chosen to pay a 2.5% tariff rather than comply with North American free trade regulations.
Stock Market Reaction and Industry Outlook
News of the possible tariff delay has positively influenced the stock market, with shares of General Motors, Ford, and Stellantis experiencing gains. President Trump emphasized that his policies are designed to boost the U.S. auto industry and stimulate economic growth.
Automakers Request Time for Adjustments
Stellantis has stated that more time is needed before implementing major changes, as rapid shifts could negatively impact operations and customers. The automakers also discussed their proposals in a separate virtual meeting with Commerce Secretary Howard Lutnick.
Next Steps and Ongoing Negotiations
The final decision on tariff delays and exemptions will be made by President Trump. Automakers remain engaged with the administration to find solutions that support U.S. manufacturing while ensuring stability in the industry.
“Trump Discusses Possible Tariff Delay with Automakers” “Trump Discusses Possible Tariff Delay with Automakers”