Trump's one-month delay in imposing tariffs on Mexican and Canadian autos

According to CNN, White House spokeswoman Caroline Leavitt announced that US President Donald Trump will delay 25% tariffs on the Mexican and Canadian auto industries for one month.

Trump's decision to grant this temporary exemption was made after talks with the three major American automakers (Ford, General Motors and Stellantis) that have shares in Mexico and Canada and assemble their cars there.

Leavitt emphasized to reporters: "We have spoken with the three major car dealers. We will give a one-month exemption (tariff) to every car that comes in under the TEMEC (trade agreement between Mexico, the United States and Canada).

Trump’s decision to grant the extension comes ahead of his plan to impose retaliatory tariffs worldwide on April 2, tariffs that a White House spokeswoman said would allow no exemptions.

The 25 percent tariffs on imports from Canada and Mexico threaten to exacerbate the auto price crisis, with prices for the three U.S. automakers rising on Wednesday, hours before Trump’s tariffs were due to go into effect.

After suspending 25 percent tariffs on imports from Canada and Mexico at the last minute in February, Trump has once again targeted his major trading partners for failing to curb illegal immigration and drug trafficking.

The New York Times reported yesterday that as U.S. tariffs on Canadian goods become a reality, Canadians are bracing for economic hardship.

Canadian Prime Minister Justin Trudeau has already announced a 25% tariff on goods imported from the United States in response to the US government's tariff war.

Mexican President Claudia Sheinbaum also said there was no justification for imposing a 25% tariff on imports from Mexico. She said her government would respond to the decision with tariff and non-tariff measures.