President Donald Trump over the weekend announced planned tariffs on imports from Canada, Mexico and China that could affect automakers.
Trump’s executive order sought to bring a 25% tariff on imports from Canada and Mexico and a 10% levy on imports from China starting Tuesday.
Trump said on Monday he will pause tariffs on Mexico for one month after the country’s president, Claudia Sheinbaum, agreed to deploy 10,000 troops to the U.S.-Mexico border. Trump said Secretary of State Marco Rubio, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick will negotiate with high-level representatives of Mexico.
STOCKS SINK MONDAY AFTER TRUMP’S TARIFFS ON CANADA, MEXICO AND CHINA
What Automakers are Saying
Matt Blunt, the president of the American Automotive Policy Council whose members include Ford, General Motors and Stellantis, said Monday in a statement to FOX Business that the association “continue[s] to believe that vehicles and parts that meet the [United States-Mexico-Canada Agreement’s] USMCA’s stringent domestic and regional content requirements should be exempt from the tariff increase.”
“Our American automakers, who invested billions in the U.S. to meet these requirements, should not have their competitiveness undermined by tariffs that will raise the cost of building vehicles in the United States and stymie investment in the American workforce,” he added.
The Alliance for Automotive Innovation did not return FOX Business’ request for comment. Toyota declined to comment.
CHINA THREATENS TO RETALIATE AGAINST TRUMP TARIFFS
Autos Drive America counts a dozen international automakers among its members, including Honda, BMW, Hyundai, Mazda, Mercedes-Benz, Nissan, Volkswagen and others.
“The North American auto industry is highly integrated and the imposition of tariffs will be detrimental to American jobs, investment, and consumers,” Autos Drive America CEO Jennifer Safavian said Saturday in a press release, arguing they “undermine” the USMCA.
“We urge all parties to reach a swift resolution in order to provide clarity and stability for the entire U.S. auto industry,” she said. “U.S. automakers would be better served by policies that reduce barriers for manufacturers, ease regulations that hinder production, and create greater export opportunities – policies that we look forward to working with President Trump to enact.”
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