Following the money behind Russia’s war
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President Donald Trump has delayed the implementation of 25% tariffs on automobile imports from Canada and Mexico for one month, following requests from executives at General Motors, Ford, and Stellantis.
The reprieve is expected to provide automakers until April 2 to begin shifting offshore production to facilities within the United States.
The decision comes less than two days after the tariffs were announced—a measure that reimposes duties on goods previously exempted under the North American trade agreement, often referred to as NAFTA 2.0. Under the terms of the agreement, automakers that comply with the United States-Mexico-Canada Agreement (USMCA) had previously enjoyed duty-free access.
The Big Three automakers operate complex supply chains with manufacturing facilities located in Canada and Mexico. For instance, General Motors produces its Chevy Equinox in both countries, while Ford’s Lincoln Nautilus SUVs and Stellantis’ Dodge Chargers are made in Ontario. Numerous automotive suppliers also rely on plants in the region.
Industry analysts warn that the tariffs could lead to a significant increase in vehicle sticker prices—potentially up to $12,000—at a time when car prices are already near historic highs. Jeff Schott, a senior fellow at the Peterson Institute for International Economics, noted that higher prices could dampen consumer demand and leave dealers with costly unsold inventory.
During an address to Congress on Tuesday, President Trump urged manufacturers to move production onshore. White House press secretary Karoline Leavitt stated at a briefing that the administration expects GM, Ford, and Stellantis to shift their operations to the United States before the tariffs are fully implemented at the end of the month. “He told them that they should get on it,” Leavitt added.
However, challenges remain. Ford CEO Jim Farley acknowledged at a recent investor call that the company does not have excess capacity at its existing plants to easily accommodate such a shift. Farley warned that while Ford could absorb the tariffs in the short term, prolonged duties could inflict unprecedented damage on the U.S. automotive industry.
Data from Edmunds.com indicate that, through February, nearly half of all new vehicles sold in the U.S. were manufactured domestically, with 17.4% built in Mexico and 7.4% in Canada.
In a statement, Ford reiterated its commitment to U.S. manufacturing: “Since President Trump’s successful USMCA was signed, Ford has invested billions in the United States and committed to billions more in the future to both invest in American workers and ensure all of our vehicles comply with USMCA. We will continue to have a healthy and candid dialogue with the Administration to help achieve a bright future for our industry and U.S. manufacturing.”
The death toll from Hong Kong’s deadliest fire in decades has risen to 161, after forensic analysis confirmed one more victim among the charred remains at Wang Fuk Court in Tai Po, more than three weeks after the blaze began, authorities said on Saturday.
Israeli Prime Minister Benjamin Netanyahu is set to meet President Donald Trump on 29 December in Florida, where he is expected to present a package of military options regarding Iran, Israel’s public broadcaster KAN reported on Saturday.
The United States seized a second merchant vessel carrying oil off the coast of Venezuela in international waters on Saturday, as part of Washington’s sanctions enforcement campaign, according to the Department of Homeland Security.
US intelligence assessments indicate that Russian President Vladimir Putin continues to seek full control of Ukraine and to expand Russia’s influence in parts of Europe formerly under Soviet rule, contradicting repeated claims that Moscow poses no threat to the continent.
The United States has proposed a potential new format for peace talks between Ukraine and Russia, which could include American and European representatives, Ukrainian President Volodymyr Zelenskyy said on Saturday, December 20.
Warner Bros Discovery’s board rejected Paramount Skydance’s $108.4 billion hostile bid on Wednesday (17 December), citing insufficient financing guarantees.
Ford Motor Company said on Monday it will take a $19.5 billion writedown and scrap several electric vehicle (EV) models, marking a major retreat from its battery-powered ambitions amid declining EV demand and changes under the Trump administration.
Iran has rolled out changes to how fuel is priced at the pump. The move is aimed at managing demand without triggering public anger.
U.S. stock markets closed lower at the end of the week, as investors continued to rotate out of technology shares, putting pressure on major indices.
The U.S. Federal Reserve’s Federal Open Market Committee (FOMC) cut its benchmark interest rate by 25 basis points to a range of 3.50% to 3.75% following its two-day policy meeting, according to an official statement issued on Wednesday, 10 December.
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