PNN – The US government announced a one-month postponement of 25% tariffs on the automotive industry in Mexico and Canada.
According to the report of Pakistan News Network on CNN, White House spokeswoman Caroline Leavitt announced that US President Donald Trump will postpone 25% tariffs on the automotive industry in Mexico and Canada for one month.
Trump’s decision to grant this temporary exemption was made after discussions with three major American automakers (Ford, General Motors, and Stellantis) that have stakes in Mexico and Canada and assemble their cars there.
Leavitt emphasized to reporters: We’ve talked to the three major car dealers. We’re giving every car that comes in under the TMC (trade agreement between Mexico, the United States and Canada) a one-month (tariff) exemption.
Trump’s decision to grant the extension comes ahead of his plan to impose reciprocal tariffs worldwide, which will be announced on April 2nd, and which, according to a White House spokesman, do not allow for any exemptions.
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The 25% tariffs on imports from Canada and Mexico threaten to exacerbate the car price crisis; as seen on Wednesday, hours before Trump’s tariffs were imposed, prices of products from these three American manufacturers increased.
After suspending 25% tariffs on imports from Canada and Mexico at the last minute last February, Trump has once again targeted his country’s major trading partners with his tariff policy for their failure to curb illegal immigration and drug trafficking.
The New York Times reported yesterday: As US tariffs on Canadian imports become a reality; the people of this country are preparing themselves for economic hardship.
Canadian Prime Minister Justin Trudeau previously announced the imposition of a 25% tariff on goods imported from the United States in response to the US government’s tariff war.
Mexican President Claudia Sheinbaum also announced that there is no justification for imposing 25% tariffs on imports from Mexico.
He said his government would respond to the decision with tariff and non-tariff measures.