Trump Pauses Tariffs on Automobiles, Receives Praise

Published on 5 March 2025 at 19:29

by Joe

4.25 to 5-minute read

On Wednesday, the stock market experienced a significant boost following the Trump administration's decision to grant automakers a one-month reprieve from recently imposed tariffs. The Dow Jones Industrial Average rose by nearly 500 points, or 1.1%, while the S&P 500 also saw a 1.1% increase. The Nasdaq, heavily weighted with tech stocks, climbed almost 1.5% by the end of the trading day.

White House Press Secretary Karoline Leavitt announced that President Donald Trump had agreed to delay auto tariffs after receiving a request from the "Big Three" U.S. automakers: Ford, General Motors, and Stellantis, which owns Jeep and Chrysler. "The president is providing a one-month exemption to ensure these companies are not placed at an economic disadvantage," Leavitt stated during a press briefing.

 

The announcement sent automakers' stock prices soaring. Ford's shares closed up nearly 6%, General Motors rose over 7%, and Stellantis surged more than 9%. The tariffs, introduced just a day earlier, had raised concerns for U.S. automakers, many of which rely on supply chains deeply connected to Mexico and Canada.

 

The American Automotive Policy Council (AAPC), a trade group representing the Big Three, praised the temporary exemption. AAPC President Matt Blunt expressed gratitude in a statement to ABC News, saying, "Ford, GM, and Stellantis commend President Trump for acknowledging that vehicles and parts meeting stringent USMCA content standards should be exempt from these tariffs." He added, "We are eager to collaborate with the administration to boost U.S. automotive production and expand global exports."

 

Despite the tariff relief for automakers, Trump criticized Canada on Wednesday for failing to take adequate steps to address U.S. concerns, which he said were necessary for the full withdrawal of tariffs. During a call with Canadian Prime Minister Justin Trudeau, Trump emphasized the need for Canada to take stronger action against drug trafficking, particularly the flow of fentanyl into the U.S. "Nothing has convinced me that the fentanyl problem has been resolved," Trump wrote on Truth Social, adding that the call ended "somewhat amicably."

 

Data from the U.S. Customs and Border Patrol (CBP) revealed that nearly all fentanyl seized since September entered through the southern border with Mexico, with less than 1% coming from Canada. Trudeau had earlier dismissed the tariffs as "senseless" and based on unfounded claims about Canada's role in the U.S. drug crisis. Yet, in reality the amount coming across the Canadian border should be 0. 

 

Tensions between the U.S. and Canada escalated further after China warned it was prepared for any "type of war" with the U.S. following the latest round of tariffs. The Trump administration imposed 25% tariffs on goods from Mexico and Canada, alongside 10% tariffs on Chinese imports, doubling the rates set last month. China retaliated by introducing additional tariffs of 10% to 15% on U.S. agricultural products like chicken, wheat, soybeans, and beef, targeting industries in politically significant regions.

 

The new Chinese tariffs, set to take effect on March 10, build on those imposed during the 2018 trade war. While some tariffs were eased under the 2020 "phase one" trade deal, the latest measures signal a renewed escalation in trade tensions.

 

In a statement, the White House reiterated Trump's commitment to protecting U.S. trade interests. Commerce Secretary Howard Lutnick hinted that Canada and Mexico might soon receive relief for certain goods covered by the North American free trade agreement, though no such compromise was mentioned for China.

 

America will survive tariffs. In case you didn't know, almost every country on earth charges us tariffs to ship our goods to them. However, the media, the left, and the mindless zombies who still blindly support them fell as though we should not do the same. 

 
 
 
 
 

 

 

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