President Donald Trump is giving a one -month exemption for American vehicle manufacturers on his strict new tariffs on imports from Mexico and Canada, amidst the apprehension that business war could cause damage to American manufacturers.
Mr. Trump announced on Wednesday (March 5, 2025) after speaking with leaders of “Big 3” Autometers, Ford, General Motors and Stelanis. Mr. Trump also said that he told the chief officials of the automaker that he should produce from Canada and Mexico in the US, according to the White House Press Secretary Karolin Levit.
“We spoke with Big Three Auto dealers,” Mr. Trump said in a statement read by his spokesperson. “We are going to give a month’s discount on any auto coming through USMCA,” he re -organized in his first term, referring to the North American Free Trade Agreement. ,
The press secretary of Mr. Trump said that the President is open to hear about additional exemption, but Canadian Prime Minister Justin Trudeau is not ready to raise the ventilative tariff of Canada, if Mr. Trump leaves a tariff in Canada, a senior official said. The Associated PressThe officer confirmed the stance on the condition of anonymity as he was not authorized to speak publicly on the matter.
Also read America, India, China to implement mutual tariffs from April 2: Trump
“Both countries will still be in touch,” said by the office of Mr. Trudeau.
Ontario Premier Dug Ford told earlier The Associated Press The auto sector in the US and Canada will run for about 10 days before they start closing assembly lines in the US and Ontario.
“People are going to lose their jobs,” he said.
Commerce Secretary Howard Lutnik earlier said that 25% of tariffs kept in Canada and Mexico could be caused.
Also read Trump’s trade war takes vengeance rapidly with new tariffs from Mexico, Canada, China
However, Mr. Trump’s tariff has shaken bad blood among colleagues, who sees their aggression on business, Canada suggested that it would reject any proposal to water the old tariff any day. Trade war is not necessarily a brief clash because the White House states that the rigid taxes are coming in April, even businesses and consumers worry that rising costs will crush economic growth, spoil inflation and result in pruning.
Nevertheless, the administration is struggling with the collapse of tariffs that can make a serious shock for low prices for their political mandate. Mr. Trump has admitted that his tariffs can cause some financial pain, yet he has repeatedly said that tariffs will lead to more domestic investment and factory work.
Interview with Wednesday (March 5, 2025) Bloomberg televisionMr. Lutnik said that Mr. Trump will update his tariff plans with an announcement of one afternoon, possibly sparing areas such as auto from import taxes.
On 2 April, Mr. Trump planned to announce what he calls “mutual” tariffs to match tariffs, taxes and subsidies provided by other countries. This can increase the tariff rates charged globally, maintaining the risk of a broad tariff dramatically.
Also read Trudeau called Trump’s tariffs ‘very dumb’, we call Putin to please Putin while starting a trade war against Canada.
Mr. Lutynik said that he would talk about possible options about Canada and Mexico with Mr. Trump on Wednesday (March 5, 2025), saying that the two countries are working to overcome the concerns of the US President about drug trafficking. Mr. Lutnik said that Mr. Trump hoped to announce his decision on Wednesday (March 5, 2025).
On Tuesday (March 4, 2025), Mr. Trump imposed 25% tax on imports from Mexico and Canada, reduced Canadian energy products such as oil and electricity at a rate of 10%. The President also doubled 10% of tariffs, which he had reduced to 20% on China. The administration has said that tariffs are about preventing smuggling of drugs like Fantenal, but Mr. Trump also suggested that tariffs are constantly about to get rid of American trade deficit.
Taxes triggered an anti -counter -measures by Canada and China almost immediately, with Mexico plans to declare their response on Sunday (March 9, 2025). Since the victory of Mr. Trump in last year’s presidential election, the US stock market has abandoned all the benefits and consumers have already ended inflation and are worried that the cost of tax growth will increase higher prices. Those concerns may have inspired Mr. Lutynik to indicate a possible return in the afternoon interview on Tuesday (March 4, 2025). Fox Business Network,
The US President tried to play potential economic losses as a “slight disturbance”, as the administration suggested that high inflation estimates and a slow increase in most of the outside economic forecasts.
Also read Wall street necklace in the form of kick in Trump’s tariff deepens
“This could be a small of an adjustment period,” he said that after claiming that farmers would benefit from mutual tariffs on countries being tarested on American exports. “You have to bear with me again and it would be even better.”
Mr. Trump also said in his speech that he is very excited on Tuesday (March 4, 2025) with “all three, top people” and “they are very excited.” The Big Three Automkers are General Motors, Ford and Salentis, which are the original company of Chrysler and Jeep. The domestic auto sector will be particularly weak for tariffs as it depends as part of its supply chains on Mexico and Canada.
Mr. Trudeau said on Tuesday (March 4, 2025) that his country would plaster tariffs on US goods worth $ 100 billion during 21 days, saying that the United States had given up long -standing friendship.
“Today, the United States began a business war against Canada, their closest companion and colleague, his closest friend. At the same time, they are talking about working positively with Russia, please Vladimir Putin a lie, the deadly dictator. Understand this, “Mr. Trudeau said on Tuesday (March 4, 2025).
Also read How to respond to Mexico Trump’s tariff?
Mexico indicated that it would declare his own counterators on Sunday (March 9, 2025).
Beijing responded with a tariff of up to 15% at a wide array of US agricultural exports. This expanded the number of American companies to about two dozen under export control and other restrictions.
“If the war is what America wants, it is ready to fight a tariff war, a business war or any other type of war,” the Chinese embassy posted on Tuesday (March 4, 2025) on X.
In response to China, US Defense Secretary Pete Hegseth told Fox news channel“Fox and Friends” that the United States is “ready” for war against the world’s second largest economy.
Also read No response from India to Trump tariff so far
Mr. Hegseth said in the morning on Wednesday (March 5, 2025), “Those who have been preparing for a long war for peace.” “If we want to stop war with Chinese or others, we have to be strong.”
Ms. Levitt is one of the three administration officers who face the lawsuit The Associated Press First- and on the fifth-mendament ground. AP The three say that they are punishing the news agency for editorial decisions they oppose. White house says AP The US is not following an executive order to refer to the Gulf of Mexico as the Gulf of America.
Published – March 06, 2025 01:26 AM IST
