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The United States is considering possible relief for some sectors affected by tariffs that would be imposed on Canada and Mexico starting this Wednesday, particularly in the automotive sector.
According to Bloomberg's report on March 4, the administration of President Donald Trump may postpone the 25% tariffs applied to these countries for a month, in an effort to mitigate the negative effects on production and employment in the automotive industry.
On Tuesday, the White House met with senior executives from major U.S. automakers —General Motors (GM), Ford, and Stellantis— to discuss the situation created by tariffs, reported the agency EFE.
This measure was received positively by the markets, where the stocks of the three companies rose following the announcement of a possible moratorium.
The North American automotive sector, comprising the United States, Canada, and Mexico, has been one of the hardest hit by the trade war in the region, as the parts used in vehicle manufacturing cross borders up to eight times throughout the production process.
According to S&P Global Mobility, tariffs could reduce vehicle production in the region by 33%, leading to a significant decrease in daily car production—around 63,900 units—and potentially resulting in layoffs at manufacturing plants and component supplier companies.
The U.S. Secretary of Commerce, Howard Lutnick, indicated that Trump is considering relief for certain sectors of the economy, particularly those linked to the automotive industry, in an effort to balance commercial interests with security concerns, especially regarding the flow of fentanyl from Mexico.
"If they can stop the flow of fentanyl, the president has an open mind," Lutnick stated in an interview with Bloomberg TV.
Although the details of the possible relief have not yet been confirmed, Lutnick indicated that exceptions could be made in certain sectors.
"We hope to make an announcement this afternoon, which will be a middle ground," he added, emphasizing that the measure will depend on the efforts of Mexico and Canada to combat fentanyl trafficking.
However, the Secretary of Commerce reminded that reciprocal tariffs continue to be an important part of Trump's agenda, with new announcements scheduled for April 2.
The announcement of tariffs by Trump has sparked an immediate international response.
Canada has already implemented its own tariffs in retaliation, while Mexico, which had remained cautious, announced on Tuesday that its government will impose tariff and non-tariff measures in response to the United States' decision to apply a 25% levy on Mexican imports.
The president of Mexico, Claudia Sheinbaum, described the tariffs as "inconceivable" and warned about the negative consequences that could affect both nations. Her government has promised to announce its formal response next Sunday, March 9.
In South Florida, experts like Albert Williams, a professor of finance and economics at Nova Southeastern University, warn that tariffs could lead to a rise in prices of everyday products, from avocados to trucks manufactured in Mexico.
According to Williams, imported trucks could face an increase of between 3,000 and 12,000 dollars per unit due to new tariffs.
Despite the warnings, Trump defends his strategy, noting that tariffs could strengthen domestic production.
Frequently Asked Questions About Trump's Tariffs on Canada and Mexico
Why is the United States considering easing tariffs on Canada and Mexico?
The United States is considering easing tariffs due to the negative impact on production and employment in the automotive industry, as well as in response to the security measures and efforts to combat fentanyl trafficking adopted by Canada and Mexico.
How does the imposition of tariffs affect the North American automotive industry?
The North American automotive industry could see a 33% reduction in vehicle production, which would impact daily output and could lead to layoffs at manufacturing plants and component supply companies, according to S&P Global Mobility.
What measures have Canada and Mexico taken in response to the tariffs imposed by the U.S.?
In response to the tariffs, Canada and Mexico have implemented security and border control measures. Canada has reinforced its border with a security plan of 1.3 billion dollars, and Mexico has deployed 10,000 National Guard members to combat drug trafficking.
What impact do tariffs have on American consumers?
Tariffs could lead to an increase in the prices of everyday products in the United States, including cars and agricultural products like avocados, due to the rising costs of imports from Mexico and Canada.
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