Automobile manufacturers gain applause from Canada and Mexico’s rates

The president of the United States, Donald Trump, said he would temporarily avoid cars manufacturers of a new 25% import tax imposed on Canada and Mexico, only one day after tariffs came into force.

The White House announcement occurred even when Trump continued to exploit Canada for not doing enough to prevent drugs from entering the United States.

“Nothing has convinced me that it has stopped,” Trump wrote on social networks After a telephone call with Canadian Prime Minister Justin Trudeau about the economic interruption caused by the new commercial tariffs.

The news of relief helped boost US actions, which closed more After two days of decrease that had eliminated the profits that the S&P 500 had seen from the presidential elections in November.

The exemption of rates is for cars made in North America that comply with the existing free trade agreement of the continent.

That agreement, which was negotiated by Trump during his first term, establishes rules on how much of a car must be done in each country to qualify for tax -free treatment.

The White House Secretary, Karoline Leavitt, said Trump had supported an exemption from one month to tariffs for the automotive industry after Ford, General Motors and Stellantis, which have supply chains that extend in North America.

The new tariffs, which are an applied tax when the goods enter the country, were ready to interrupt a third of car production in North America within a week, according to S&P Global Mobility analysts.

Ford shares increased by more than 5% after the announcement, while General Motors’ shares increased more than 7%. Stellantis actions in the United States increased more than 9%.

“The president is open to listen to additional exemptions,” added Mrs. Leavitt. “He always has an open dialogue and will always do what he thinks is suitable for the American people.”

Ford said in a statement that the company will continue to have a “healthy and sincere dialogue with the administration” and will promote its investment of billions in the United States.

The assets that are worth billions cross the borders of the United States, Canada and Mexico every day and their economies are deeply integrated.

The Canada Chamber of Commerce warned that the affordability would be injured and that commercial relations would suffer, despite the possibilities of objective relief.

“We have already seen this movie.” This is not how a lasting commercial alliance is built. ”

Ontario’s Prime Minister Doug Ford told Canadian media that the relief of one month for car manufacturers would not alter their reprisal plans, which have already included an arrest in the sales of US spirits in the province.

Trump’s movements, and their threats to impose “reciprocal” tariffs on countries around the world, have generated fears of a broader commercial war.

In addition to Mexico and Canada, it hit China’s assets with an additional tariff on Tuesday, raising the encumbrances to at least 20% and inciting the country to retaliate against the exports of the United States, including agricultural products.

Canada also responded with its own retaliation import levies on US products. Uu. After 25% tariffs of Washington over their two neighbors entered into force on Tuesday, affecting items that include peanut butter, oranges and wine.

Mexico also said that it would respond, even with its own tariffs.

“I don’t know where we are going with this and how it ends. I just hope it ends quickly,” said Iowa Bob Hemesath farmer, president of the Board of Farmers of the Lobby group for free trade, which has generated concerns about tariffs.

Large retailers in the United States have already warned that measures will lead to higher prices in goods such as avocados in a matter of days, while economists forecast economic recessions in Mexico and Canada caused by tariffs.

Trump has recognized that his movements can lead to short -term economic pain in the United States, but said he wants to protect the United States industry and boost manufacturing.

He has launched tariffs this week against the assets of the two residents of the United States, as well as in China, as a response to the flow of migrants and fentanyl through the border.

When writing on social networks on Wednesday, Trump said he had told Trudeau that the situation was not improving.

“He said he has improved, but I said: ‘That is not good enough,” Trump said.

Trudeau called Trump’s claims about drugs as a “completely false” justification for tariffs in his country.

White House officials have said that Trump still intends to advance on April 2 with reciprocal tariff plans in other countries around the world that he considers to unfairly treat the United States.

“There will be tariffs, let’s be clear, but what he is thinking about is what sections of the market that he may consider giving them relief until we arrive, of course, April 2,” said Secretary of Commerce Howard Lutnick to Bloomberg on Wednesday.