PiCK
Trump calls auto companies... "One month exemption for cars from 25% tariffs on Canada & Mexico"
Summary
- The Trump administration announced that it would exempt automobiles from tariffs for one month for those coming from Canada and Mexico.
- President Trump's decision is a measure to prevent economic disadvantages for the U.S. automobile industry, according to spokesperson Leavitt.
- This tariff exemption measure will give Korean automobile and parts companies time to prepare countermeasures.
White House Official Announcement
The Trump administration announced on the 5th that it will exempt automobiles from the 25% tariff imposed on Mexico and Canada, which has been in effect since the 4th (local time), for one month.
White House spokesperson Karoline Leavitt said during a briefing that day, "We have spoken with the 'Big 3' automakers" and added, "We will exempt cars coming in through the United States-Mexico-Canada Agreement (USMCA) from tariffs for one month."
Spokesperson Leavitt explained, "At the request of the industry associated with USMCA, (President Trump) is exempting them from tariffs for one month to ensure they don't suffer economic disadvantages." This clarifies that the one-month exemption measure is not in consideration of relations with Canada and Mexico, but to protect the domestic industry.
Earlier that day, President Trump had a call with representatives of the Big 3 American automakers - GM, Ford, and Stellantis. President Trump implemented the 25% tariff on Canada and Mexico from the 4th, after initially postponing it for a month from the 4th of last month.
However, imposing high tariffs on these countries, whose supply chains are integrated as one under the USMCA, a type of free trade agreement with zero tariffs, has also impacted the U.S. economy, with American companies' stock prices plummeting. Concerns were also raised that the tariffs could lead to a sharp increase in car prices for U.S. consumers.
With this decision to exempt Canadian and Mexican automobiles from tariffs for one month, Korean automobile manufacturers and parts suppliers that have expanded into Mexico to utilize the USMCA will gain time to prepare countermeasures.
Spokesperson Leavitt reconfirmed during the briefing that "reciprocal tariffs," which are applied considering each country's tariff rates and non-tariff barriers, will take effect on the 2nd of next month.
Reporter Song Jong-hyun scream@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
