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
Tag Archives: Tariffs
Mar
Volkswagen had a tough go of things last year. The company’s sales fell by 10 percent in China, arguably its most important. Its other stronghold, Europe, was flat, with a shrinking overall car market that led to VW Group sales falling by 0.1%. This strained the company’s finances, eventually forcing the company to shed 35,000 jobs over the forthcoming years. The bright spot in all of this was the company’s performance in the Americas. South American sales grew 15%, while North American sales grew 6%, underlined by incredible 15.2% growth for the VW brand in the U.S. After decades of trying to crack the U.S., amid brutal competition elsewhere, things were looking up for Volkswagen. Now, tariffs may blow all of that away. The VW plant in Puebla, Mexico. Photo by: Volkswagen
Peter Hoskins Business reporter, BBC News US Commerce Secretary Howard Lutnick has said President Donald Trump will “probably” announce a deal to reduce tariffs on Canada and Mexico on Wednesday. “Both the Canadians and Mexicans were on the phone with me all day today trying to show that they’ll do better” on reducing the flow of fentanyl into the US, Lutnick said in an interview with Fox Business Network. But Canada’s Minister of Foreign Affairs Mélanie Joly told the BBC’s Newsnight that her office had not been contacted about the plan. Canada and Mexico announced retaliatory import levies on the US after Washington’s 25% tariffs on its two neighbours came into effect on Tuesday. Lutnick made clear that he expected the US tariffs to be lowered rather than paused. “I
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
Jan
Forget the EV tax credit. Rivian founder and CEO R.J. Scaringe is far more concerned about another threat from President Donald Trump: tariffs. “It has, in some ways, bigger implications, far bigger, than what happens with the IRA tax credits,” Scaringe told reporters last week, referring to the 2022 Inflation Reduction Act, which contains pro-EV policies that Trump has attacked time and time again. “There’s not a car company in the world that’s not thinking about moving supply chains around right now,” Scaringe said. More From Our Chat With Rivian’s CEO Trump plans to slap 25% tariffs on imports from Mexico and Canada on February 1, in an attempt to pressure those governments into preventing the flow of drugs and undocumented immigrants into the U.S. But it’s American consumers and
![Brazil's President Luiz Inacio Lula da Silva poses for a photo after his first cabinet meeting of 2025, at the Granja do Torto country residence in Brasilia, Brazil, on January 20 [Eraldo Peres/AP Photo]](https://esbecgroup.com/wp-content/uploads/2025/01/Brazils-Lula-says-any-US-tariffs-would-be-reciprocated.jpg)
The Brazilian leader says he is looking for a relationship based on mutual respect after Trump threatens tariffs. Brazilian President Luiz Inacio Lula da Silva has said that, if the United States imposes tariffs on his country, he will respond in kind. Speaking at a news conference in the capital Brasilia, on Thursday, Lula said his country seeks a relationship based on mutual respect. His comments came in response to US President Donald Trump’s threat of heightened tariffs. “It is very simple: If he taxes Brazilian products, there will be reciprocity,” Lula told reporters. “Trump was elected to run the US, and I was elected to run Brazil. I will respect the US and want Trump to respect Brazil. That’s all.” The comments are the latest signal that Trump’s efforts
Jan
The International Monetary Fund (IMF) has upgraded its growth forecast for the UK economy this year, but has also warned about the possible impact of Donald Trump’s economic plans. The global institution upgraded its prediction for UK growth to 1.6% for this year from its previous estimate of 1.5%. But it said a threatened wave of tariffs by incoming US president Trump could make trade tensions worse, lower investment, and disrupt supply chains across the world. The IMF also said although tariffs, tax cuts and deregulation could boost the US economy in the short term, they could ultimately backfire.The International Monetary Fund (IMF) has upgraded its growth forecast for the UK economy this year, but has also warned about the possible impact of Donald Trump’s economic plans. The global institution