Tariffs On Vehicles, Vehicle Parts, Goods From Canada & Mexico Paused
Since the release of GBQ’s Alert on Tuesday, March 4, 2025, significant new actions have been announced by President Donald Trump with respect to tariffs imposed on products from Canada and Mexico.
Concerning Vehicles & Vehicle Parts
On Wednesday, March 5, President Trump announced tariffs on vehicles and vehicle parts would be paused for one month. This is so long as they otherwise qualify for tariff-free treatment under the U.S.-Mexico-Canada Agreement (USMCA). The pause announcement followed a meeting with the “Big Three” U.S. automakers. But it also applies to vehicle and parts manufacturers broadly, again assuming compliance with USMCA. As of the time this alert was published, this announcement has not been published within the Federal Register or on the White House’s website, but rather through statements made to various news and social media outlets.
Canada, Mexico Tariffs Postponed Until April
Similarly, on Thursday, March 6, Commerce Secretary Howard Lutnick said in a television interview on CNBC that Trump would “likely” suspend the 25 percent tariffs on Canada and Mexico for a month. Following this announcement, Trump himself announced via social media that he had postponed 25 percent tariffs on most goods from Mexico following a discussion with Mexican President Claudia Sheinbaum. There was no mention of the tariffs on goods from Canada.
More Updates On The Horizon
This story is progressing rapidly and dynamically, and represents a far more active and contradictory approach to governmental intervention in the economy than American companies have dealt with in the recent past. Companies directly importing or exporting goods should continue to monitor news sources for updates on the fast-changing situation.
GBQ is able to assist companies with analyzing investment decisions and their impacts. Contact your GBQ advisor. Or click here if you would like to discuss the impact of actions your company is considering taking in response to trade uncertainty.
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