Trump pauses tariffs for autos as Trudeau call yields no breakthrough

U.S. automakers received a temporary one-month exemption from President Donald Trump’s tariffs on Canada and Mexico, following talks with the Big Three automakers—Stellantis, Ford, and General Motors. The decision came as concerns grew over consumer price increases and economic impacts.

Despite discussions with Canadian Prime Minister Justin Trudeau, Trump remained unconvinced that Canada had done enough to curb fentanyl smuggling, dampening hopes for broader tariff relief. His 25% tariffs on imports from Canada and Mexico, along with additional levies on China, have caused global market turmoil and prompted retaliatory measures from Canada and Mexico.

While automakers saw stock surges, tariffs on consumer goods like avocados, strawberries, and electronics are expected to raise U.S. prices. Trump acknowledged a “little disturbance” to the economy but insisted the tariffs were necessary. The administration is considering more exemptions, but economists warn of inflation and slower economic growth.

Source – CGTN