Trump to Reveal New Tariffs for the Automotive Sector Today

The President of the United States, Donald Trump, will make an announcement this Wednesday regarding tariffs that will affect the automotive industry, as reported by White House spokesperson, Karoline Leavitt, during a press conference.

Mexico hopes that, thanks to the USMCA, it can receive "special" treatment concerning the tariffs Trump intends to impose.

“The president will hold a press conference in the Oval Office today to communicate the applicable tariffs on the automotive industry. I will let him share the details later,” Leavitt stated. Trump has openly expressed his desire to impose tariffs on vehicles imported into the United States and has hinted that he might announce this before implementing his "reciprocal" tariffs, which are scheduled for April 2. “We’ll be sharing this information promptly, and April 2 will be the date for the reciprocal tariffs,” he said on Monday. These tariffs are aimed at equalizing, in terms of taxes, what is applied to American products that go abroad. Earlier in March, Trump temporarily suspended tariffs on cars coming from Mexico and Canada, his two partners in the North American Free Trade Agreement (USMCA). The news about the new tariffs immediately impacted the market, causing stock prices of several car manufacturers to drop: around 5:30 PM GMT, Ford was down 1.55%, General Motors fell 1.65%, Tesla dropped 6.63%, and Stellantis was down 2.01%. Automotive companies are already affected by tariffs on aluminum and steel, which currently carry a 25% tax on imports of these metals into the United States. The United States obtains about half of the steel and aluminum it uses across various industries, including automotive, aerospace, petrochemical, and consumer products like canned food. Mexico's President, Claudia Sheinbaum, expressed confidence this Wednesday that the country could receive "special treatment" due to the USMCA, just as Trump announces a general series of tariffs on April 2. In her morning press conference, the president was asked how her government plans to deal with potential decisions made by Trump. “We believe, based on what President Trump has communicated so far (...), that Mexico will have a special situation because of the treaty,” Sheinbaum commented, highlighting the negotiations that her Secretary of Economy, Marcelo Ebrard, has had with his American counterpart, Howard Lutnick. Reported by AFP

Trump's decision to impose tariffs on the automotive industry creates uncertainty in the market and could affect the entire production chain, not only in the United States but also in partner countries like Mexico. It is crucial for companies to adapt to these rapid changes and seek to diversify their supply chains to mitigate financial risks and maintain competitiveness in a volatile economic environment.