Canadian, Mexican and American industries react as tariffs take effect
North Americans in the auto, agriculture, and toy industries shared their reactions to new tariffs.
WASHINGTON ― President Donald Trump has agreed to temporarily exempt automobiles from the newly imposed tariffs on imports from Canada and Mexico for one month, following a request from the three largest U.S. automakers, as stated by the White House on Wednesday.
White House press secretary Karoline Leavitt mentioned that the exemption is intended “so they are not at an economic disadvantage” but emphasized that reciprocal tariffs on goods from nations imposing fees on U.S. exports will still take effect on April 2.
“They requested the call. They made the ask,” Leavitt said regarding General Motors, Ford, and Stellantis, which strongly oppose the tariffs. “And the president is happy to do it.”
This decision comes after Trump’s implementation of 25% tariffs on all imports from Canada and Mexico, which triggered a trade war, caused the stock market to drop for two consecutive days, and raised concerns among consumers about increasing costs.
During his joint address to Congress on Tuesday evening, Trump indicated that he had spoken earlier in the day with leaders of General Motors, Ford, and Stellantis.
Trump contends that the tariffs are in response to a lack of border security from Canada and Mexico, which has allowed fentanyl produced in China to infiltrate the U.S. He also argues that the tariffs are essential for bolstering domestic manufacturing in critical sectors and generating additional tax revenue. However, economists caution that tariffs, as taxes on imports, ultimately lead to increased prices for consumers.
Trump tells Trudeau border efforts ‘not good enough’
Along with the tariffs on Canada and Mexico, Trump has also imposed an additional 10% tariff on imports from China.
In response to the tariffs, Canadian Prime Minister Justin Trudeau announced on Tuesday that Canada would implement retaliatory 25% tariffs on American goods, calling Trump’s measures “a very dumb thing to do.” He stated, “Canadians are reasonable and we are polite, but we will not back down from a fight.”
Trump revealed in two social media posts on Wednesday that Trudeau reached out to inquire about possible solutions for the tariffs. Trump recounted that he informed Trudeau that many Americans have died from fentanyl entering the country via the Mexican and Canadian borders, to which Trudeau stated that the situation had improved, but Trump responded, “That’s not good enough.”
Trump further accused Trudeau ‒ whom he referred to as “Governor Justin Trudeau of Canada” ‒ of leveraging the tariff situation to maintain his position of power. Trudeau has indicated plans to step down after leading for nine years when his Liberal Party selects a new leader.
In his address to Congress, Trump acknowledged that the tariffs may cause “a little disturbance” but asserted that it is a worthwhile endeavor, emphasizing that tariffs are essential for revitalizing the American economy.
“Tariffs are about making America rich again and making America great again,” Trump proclaimed, reiterating that new reciprocal tariffs ‒ where the U.S. will impose tariffs on nations that impose duties on U.S. exports ‒ will begin on April 2.
“Whatever they tax us, we will tax them,” Trump stated. “If they enact non-monetary tariffs to restrict our access to their market, we will implement non-monetary barriers to keep them out of ours.”
Reach Joey Garrison on X @joeygarrison.
