Auto Industry Could Be Spared Tariffs on April 2nd
• The auto industry could be exempted – for now - from the U.S. administration's threatened 25-percent tariffs.
The latest threatened implementation date for the U.S. administration's 25-percent tariffs on products entering the country from Canada and Mexico (as well as 10 percent on energy) is April 2nd. There’s broad consensus that such a tariff would be catastrophic for the automobile industry and for the economies of each country.
It’s also clear to many that that fact is not news to the administration. Bloomberg reported this week that the US administration is now likely to leave the auto industry out of the tariffs for now. There’s no certainty that will be the case though, so caution is still in order.
Bloomberg also reports, citing White House officials, that the U.S. administration is still considering raising a tax on automotive products, but at a later date. We’ve seen that kind of tactic before, but it could well be a way for the White House to save face as it backs off an economically suicidal plan.
Industry players and watchers remain cautious. As reported by Automotive News, Flavio Volpe, director of the Canadian Automotive Parts Manufacturers' Association, believes that given the constant threat of tariffs other announcements, the reported news doesn’t provide much comfort.
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