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President Donald Trump reached an agreement to postpone the expansion of tariffs on Canadian and Mexican goods until March 1. Some lawmakers interpreted the initial responses to the import duties as support for the administration’s trade policies.
However, suppliers continued to worry that higher tariffs would place them in a difficult financial situation.
Trump announced that progress has been made in negotiations and stated that he will postpone the tariffs until March 1, Automotive News said.
“I am very pleased with this initial outcome, and the Tariffs announced on Saturday will be paused for a 30-day period to see whether or not a final Economic deal with Canada can be structured. FAIRNESS FOR ALL!” President Trump said on his Truth Social Platform.
Trump said he had reached an agreement with Mexico President Claudia Sheinbaum to pause the U.S. tariffs for a month in a trade agreement for Mexico’s utilization of 10,000 troops to stop the flow of drugs on the U.S. border, The New York Times said.
President Claudia Sheinbaum of Mexico struck a deal with the Trump administration.
Automotive suppliers are worried about tariff costs
Suppliers in the automotive industry are warning that high tariffs imposed on Canada and Mexico could drive companies out of business, Automotive News said.
Click here to read our latest article on Trump's tariff plans.
MEMA, the trade organization representing U.S. suppliers, stated that increased tariffs would have consequences for the U.S. vehicle supplier industry, further impacting American jobs, raising costs for consumers, and undermining the highly integrated North American supply chain that is critical to U.S. competitiveness, according to Aftermarket News.
Linda Hasenfratz, chairperson of the Canadian supplier Linamar Corp., warned that North American auto production could cease within a week if across-the-board tariffs are imposed, Automotive News said.