Trump will exempt automakers from the 25% tariff on Mexican and Canadian goods for at least a month, the White House said. The exemption applies to vehicles that comply with the relatively complicated criteria set out in the U.S.-Mexico-Canada free trade agreement. Moving an automotive supply chain takes a lot longer than a month, though, so this isn’t the end of the problem for car companies. President Donald Trump granted automakers a temporary reprieve from his newly announced tariffs Wednesday. The new 25% tariff on almost all imports from Mexico and Canada will not apply to automakers for at least one month, the White House said. It’s an important break for the industry, which has become ground zero for the tariff war. Trump’s press secretary said the decision was made
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Mexico’s President Claudia Sheinbaum, seen here in early February, has pledged to collaborate with Washington. Photo: Yuri CORTEZ / AFP/FileSource: AFP Mexican President Claudia Sheinbaum said Thursday that she hoped to talk to her US counterpart Donald Trump as part of efforts to avoid being hit with his threatened tariffs. She spoke shortly after Trump wrote on social media that he would move ahead with imposing levies on Mexico and Canada next week. A high-level Mexican delegation is in Washington in search of an agreement and “we hope that we can talk to President Trump once these meetings take place,” Sheinbaum said at her morning news conference. “I hope we can reach an agreement,” she added. Sheinbaum has repeatedly expressed optimism that tariffs between the two countries can be avoided.
Tariffs on goods from Mexico and Canada that are set to take effect could hike the price of a gallon of gasoline for some drivers by as much as 70 cents and send grocery bills climbing, experts told ABC News. The Trump administration this week reiterated plans to slap 25% tariffs on all products from Canada and Mexico on Feb. 1. Those countries make up two of the three largest U.S. trading partners, government data shows. Tariffs of this magnitude would likely increase prices paid by U.S. shoppers, since importers typically pass along a share of the cost of those higher taxes to consumers, experts said. The policy could raise prices for an array of products ranging from tomatoes to tequila to auto parts. “The scary thing is the list