The Trump administration is considering granting automakers a one-month delay on recently imposed tariffs regarding Mexico and Canada. This move is a temporary postponement in response to requests from industry leaders.
This was reported by Bloomberg, writes UNN.
Administration officials discussed this issue with leaders from Ford Motor, General Motors, and Stellantis. Another meeting regarding a possible reduction of tariffs is scheduled for Wednesday at the White House.
Shares of American automakers surged on this news, as of 12:03 in New York, Stellantis shares rose by 8.1%, GM shares by 6%, and Ford by 4.5%.
The largest automakers in Detroit have been actively trying to stop or revise Trump's tariffs due to concerns about potentially catastrophic consequences. Automakers and experts warn that the increase in costs from 25% tariffs imposed against the U.S. neighbors could lead to price increases on cars by thousands of dollars and disrupt supply chains.
Reminder
Donald Trump during a speech in Congress stated that he aims to impose the same tariffs on imports from foreign countries that those countries impose on American exports.
On March 4, tariffs imposed by the U.S. against Canada and Mexico came into effect. In response, Canada will impose a 25% tariff on American goods worth $155 billion.