US President Donald Trump on Thursday delayed the imposition of a 25 per cent tariff on the auto sector, which relies heavily on parts imported across the borders of Mexico and Canada.
The White House announced the postponement after meeting with executives from the Big Three automakers and Canada. Trump spoke to the CEOs of Ford, General Motors and Stellantis, US Commerce Secretary Howard Lutnick said.
The automakers should use this month-long respite to work towards the president’s goal of bringing American auto manufacturing back to the United States.
The White House said Trump is also open to discussing other products that should be exempted from the tariffs that took effect on Tuesday.
The development, at least for now, halted the sharpest decline on Wall Street in three months, US media said.
The imposition of a 25 per cent tariff on goods from Canada and Mexico has created huge difficulties for automakers, which make cars in all three countries and often ship parts across North American borders several times while they are assembled into systems and finished vehicles.
Automakers have prepared to impose a huge tax on some of America’s best-selling vehicles, particularly the most popular pickup truck in the US.
