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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.”
Greek Prime Minister Kyriakos Mitsotakis arrived in Ankara on Wednesday, where Turkish President Recep Tayyip Erdoğan held an official welcoming ceremony at the Presidential Palace, marking the start of high-level talks between the two NATO allies.
A senior adviser to Iran’s Supreme Leader said on Tuesday that negotiations with the United States must remain focused on the nuclear issue and be grounded in realism, as Washington and Tehran prepare to resume talks mediated by Oman.
James Van Der Beek, who rose to fame as Dawson Leery in the hit teen drama Dawson’s Creek, has died aged 48 following a battle with stage 3 colorectal cancer.
Canadian Prime Minister Mark Carney said a bridge project linking Canada’s Ontario province with the U.S. state of Michigan would contribute to cooperation between the two countries.
U.S. President Donald Trump and Prime Minister of Israel Trump hosted Netanyahu for closed-door talks focused on negotiations with Tehran, Gaza and wider rBenjamin Netanyahu ended a two-and-a-half-hour meeting at The White House on Wednesday without reaching agreement on how to move forward on Iran.
Russia’s car market is continuing to receive tens of thousands of foreign-brand vehicles via China despite sanctions imposed after Moscow’s full-scale invasion of Ukraine in 2022, a journalistic investigation has found.
Türkiye’s national energy company, TPAO, has struck a new cooperation deal with U.S. energy giant Chevron, signing a memorandum of understanding to explore joint oil and gas exploration and production opportunities, the Turkish Energy and Natural Resources Ministry announced on Thursday.
Wall Street ended sharply lower on Tuesday as investors worried about artificial intelligence (AI) creating more competition for software makers, keeping them on edge ahead of quarterly reports from Alphabet and Amazon later this week.
U.S. stock markets finished mixed on Wednesday (28 January) as investors reacted calmly after the Federal Reserve left interest rates unchanged, a decision that had been widely expected and largely priced in.
The S&P 500 edged to a record closing high on Tuesday, marking its fifth consecutive day of gains, as strong advances in technology stocks offset a sharp selloff in healthcare shares and a mixed batch of corporate earnings.
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