President Trump appears poised to move forward with tariffs on Canada and Mexico after a one-month pause on the action began in early February. Additionally, Trump said the U.S. would increase tariffs on Chinese goods by an additional 10 percent when the North American tariffs go into effect on March 4.
The tariffs on Chinese goods are in addition to the 10 percent Trump levied against the country earlier this month. While the short-term effects will likely include higher prices and diplomatic tensions, China is gearing up to issue countermeasures, with the country’s Ministry of Commerce saying that it “firmly opposes” the actions.
“We urge the U.S. side not to repeat its own mistakes, and to return as soon as possible to the right track of properly resolving conflicts through dialogue on equal footing,” the Ministry said in a statement. Despite that bluster from Chinese officials, most in the U.S. expect the country to be measured in its countermeasures, with an eye on negotiations instead of scorched earth retaliation.
Here in North America, Trump’s 25 percent tariffs on Canada and Mexico could push new car pricing higher, as many automakers operate cross-border manufacturing and logistics businesses. They may also lead to job losses in the short term, though in the long term, the tariffs could push automakers to localize more production, which would increase the need for manufacturing workers here.
[Images: Chevrolet, Ford, Honda]
Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by subscribing to our newsletter
