Latest news with #AutosDriveAmerica
New Straits Times
30-04-2025
- Automotive
- New Straits Times
Trump eases auto tariffs burden as Lutnick touts first foreign trade deal
WASHINGTON/DETROIT: US President Donald Trump signed a pair of orders to soften the blow of his auto tariffs on Tuesday with a mix of credits and relief from other levies on materials, and his trade team touted its first deal with a foreign trading partner. The developments helped eased some investor worries about the erratic trade policies of Trump as the president visited Michigan, a cradle of the US auto industry, just days before a fresh set of 25 per cent import taxes was set to kick in on automotive components. The trip, on the eve of his 100th day in office, came as Americans take an increasingly dim view of Trump's economic stewardship, with indications his tariffs will weigh on growth and could drive up inflation and unemployment. In his latest partial reversal of tariff policies, the Republican president agreed to give carmakers two years to boost the percentage of domestic components in vehicles assembled domestically. It will allow them to offset tariffs for imported auto parts used in US-assembled vehicles equal to 3.75 per cent of the total value of the Manufacturer's Suggested Retail Price of vehicles they build in the US through April 2026, and 2.5 per cent of U.S. production through April 30, 2027. Auto industry leaders had lobbied the administration furiously during the weeks since Trump first unveiled his 25 per cent tariffs on imported vehicles and auto parts. The levies, aimed at forcing automakers to reshore manufacturing domestically, had threatened to scramble a North American automotive production network integrated across the US Canada and Mexico. It offers the industry a "little relief" as companies invest in more US. production, Trump said as he left Washington for Michigan. "We just wanted to help them ... if they can't get parts, we didn't want to penalise them." The White House said the change will not affect the 25 per cent tariffs imposed last month on the 8 million vehicles the United States imports annually. Autos Drive America, a group representing Toyota Motor, Volkswagen, Hyundai and nine other foreign automakers, said Trump's order provided some relief "but more must be done in order to turbocharge the US auto industry." MORE TARIFF UNCERTAINTY Candace Laing, president of the Canadian Chamber of Commerce, said the tariff fix fell short of what companies in the deeply integrated North American industry needed. "Only an end to tariffs provides real relief. Ongoing ups and downs perpetuate uncertainty, and uncertainty drives away business for both Canada and the US" she said in a statement. The uncertainty unleashed across the auto sector by Trump's tariffs remained on full display Tuesday when GM pulled its annual forecast even as it reported strong quarterly sales and profit. In an unusual move, the carmaker also opted to delay a scheduled conference call with analysts until later in the week, after the details of tariff changes were known. Meanwhile, US Commerce Secretary Howard Lutnick told CNBC he had reached a deal with one foreign power that should permanently ease the "reciprocal" tariffs Trump plans to impose. Lutnick declined to identify the country, saying the deal was pending local approvals. "I have a deal done ... but I need to wait for their prime minister and their parliament to give its approval," he said. White House officials had no further comment on the country in question, but Trump struck an upbeat tone about a deal with India, telling reporters: "India is coming along great. I think we'll have a deal with India." Lutnick's comments helped further lift stock prices that had been battered by Trump's moves to reshape global trade and force goods makers to shift production to the US. The benchmark S&P 500 Index closed 0.6 per cent higher for a sixth day of gains, its longest streak of gains since November. WRONG ON EVERY PREDICTION Trump and his team aim to strike 90 trade deals during a 90-day pause on his reciprocal tariffs announced earlier in April. His administration has repeatedly said it was negotiating bilateral trade deals with dozens of countries. A chief Trump goal is to bring down a massive US goods trade deficit, which shot to a record in March on a surge of imports aimed at front-running the levies. Trump's aggressive trade stance has cascaded through the global economy since his return to office in January, and the 90-day pause was unveiled after fears of recession and inflation sent financial markets into a tailspin. Easing the impact of auto levies is Trump's latest move to show flexibility on tariffs which have sown turmoil in financial markets, created uncertainty for businesses and sparked fears of a sharp economic slowdown. A Reuters/Ipsos poll published Tuesday showed just 36 per cent of respondents approve of his economic stewardship, the lowest level in his current term or in his 2017-2021 presidency. Meanwhile, the US will release the first quarterly report on US gross domestic product during Trump's term on Wednesday. It is expected to reflect a large drag from his tariffs, mostly from a record surge in imports as companies and consumers front-loaded purchases of foreign goods to try to beat the new levies. The economy is expected to have expanded at a 0.3 per cent annualised rate from January through March, according to a Reuters poll of economists, down from 2.4 per cent in the final three months of 2024. American and global companies are increasingly sounding the alarm about the tariffs' effects on their ability to plan. UPS on Tuesday said it would cut 20,000 jobs to lower costs, while US ketchup maker Kraft Heinz and Swedish appliances maker Electrolux were among companies citing tariff headwinds. About 40 companies worldwide have pulled or lowered their forward guidance in the first two weeks of first-quarter earnings season, a Reuters analysis showed. "Every single prediction has been proved to be wrong," Yannick Fierling, Electrolux CEO, told Reuters. "I'm surprised if people are claiming they have a view where tariffs are going."
Time of India
30-04-2025
- Automotive
- Time of India
Trump eases auto tariffs burden as Howard Lutnick touts first foreign trade deal
U.S. President Donald Trump signed a pair of orders to soften the blow of his auto tariffs on Tuesday with a mix of credits and relief from other levies on materials, and his trade team touted its first deal with a foreign trading partner. #Pahalgam Terrorist Attack The groundwork before India mounts a strike at Pakistan India considers closing airspace to Pakistani carriers amid rising tensions Cold Start: India's answer to Pakistan's nuclear threats The developments helped eased some investor worries about the erratic trade policies of Trump as the president visited Michigan, a cradle of the U.S. auto industry, just days before a fresh set of 25% import taxes was set to kick in on automotive components. The trip, on the eve of his 100th day in office, came as Americans take an increasingly dim view of Trump's economic stewardship, with indications his tariffs will weigh on growth and could drive up inflation and unemployment. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Thousands Are Saving Money Using This Wall Plug elecTrick - Save upto 80% on Power Bill Click Here Undo In his latest partial reversal of tariff policies, the Republican president agreed to give carmakers two years to boost the percentage of domestic components in vehicles assembled domestically. It will allow them to offset tariffs for imported auto parts used in U.S.-assembled vehicles equal to 3.75% of the total value of the Manufacturer's Suggested Retail Price of vehicles they build in the U.S. through April 2026, and 2.5% of U.S. production through April 30, 2027. Live Events Auto industry leaders had lobbied the administration furiously during the weeks since Trump first unveiled his 25% tariffs on imported vehicles and auto parts. The levies, aimed at forcing automakers to reshore manufacturing domestically, had threatened to scramble a North American automotive production network integrated across the U.S., Canada and Mexico. It offers the industry a "little relief" as companies invest in more U.S. production, Trump said as he left Washington for Michigan. "We just wanted to help them ... if they can't get parts, we didn't want to penalize them." The White House said the change will not affect the 25% tariffs imposed last month on the 8 million vehicles the United States imports annually. Autos Drive America, a group representing Toyota Motor , Volkswagen , Hyundai and nine other foreign automakers, said Trump's order provided some relief "but more must be done in order to turbocharge the U.S. auto industry." MORE TARIFF UNCERTAINTY Candace Laing, president of the Canadian Chamber of Commerce , said the tariff fix fell short of what companies in the deeply integrated North American industry needed. "Only an end to tariffs provides real relief. Ongoing ups and downs perpetuate uncertainty, and uncertainty drives away business for both Canada and the U.S," she said in a statement. The uncertainty unleashed across the auto sector by Trump's tariffs remained on full display Tuesday when GM pulled its annual forecast even as it reported strong quarterly sales and profit. In an unusual move, the carmaker also opted to delay a scheduled conference call with analysts until later in the week, after the details of tariff changes were known. Meanwhile, U.S. Commerce Secretary Howard Lutnick told CNBC he had reached a deal with one foreign power that should permanently ease the "reciprocal" tariffs Trump plans to impose. Lutnick declined to identify the country, saying the deal was pending local approvals. "I have a deal done ... but I need to wait for their prime minister and their parliament to give its approval," he said. White House officials had no further comment on the country in question, but Trump struck an upbeat tone about a deal with India, telling reporters: "India is coming along great. I think we'll have a deal with India." Lutnick's comments helped further lift stock prices that had been battered by Trump's moves to reshape global trade and force goods makers to shift production to the U.S. The benchmark S&P 500 Index closed 0.6% higher for a sixth day of gains, its longest streak of gains since November. WRONG ON EVERY PREDICTION Trump and his team aim to strike 90 trade deals during a 90-day pause on his reciprocal tariffs announced earlier in April. His administration has repeatedly said it was negotiating bilateral trade deals with dozens of countries. A chief Trump goal is to bring down a massive U.S. goods trade deficit, which shot to a record in March on a surge of imports aimed at front-running the levies. Trump's aggressive trade stance has cascaded through the global economy since his return to office in January, and the 90-day pause was unveiled after fears of recession and inflation sent financial markets into a tailspin. Easing the impact of auto levies is Trump's latest move to show flexibility on tariffs which have sown turmoil in financial markets, created uncertainty for businesses and sparked fears of a sharp economic slowdown. A Reuters/Ipsos poll published Tuesday showed just 36% of respondents approve of his economic stewardship, the lowest level in his current term or in his 2017-2021 presidency. Meanwhile, the U.S. will release the first quarterly report on U.S. gross domestic product during Trump's term on Wednesday. It is expected to reflect a large drag from his tariffs, mostly from a record surge in imports as companies and consumers front-loaded purchases of foreign goods to try to beat the new levies. The economy is expected to have expanded at a 0.3% annualized rate from January through March, according to a Reuters poll of economists, down from 2.4% in the final three months of 2024. American and global companies are increasingly sounding the alarm about the tariffs' effects on their ability to plan. UPS on Tuesday said it would cut 20,000 jobs to lower costs, while U.S. ketchup maker Kraft Heinz and Swedish appliances maker Electrolux were among companies citing tariff headwinds. About 40 companies worldwide have pulled or lowered their forward guidance in the first two weeks of first-quarter earnings season, a Reuters analysis showed. "Every single prediction has been proved to be wrong," Yannick Fierling, Electrolux CEO, told Reuters. "I'm surprised if people are claiming they have a view where tariffs are going."
Arab News
30-04-2025
- Automotive
- Arab News
Trump eases auto tariffs burden as Lutnick touts first foreign trade deal
WASHINGTON/DETROIT: US President Donald Trump signed a pair of orders to soften the blow of his auto tariffs on Tuesday with a mix of credits and relief from other levies on materials, and his trade team touted its first deal with a foreign trading partner. The developments helped eased some investor worries about the erratic trade policies of Trump as the president visited Michigan, a cradle of the US auto industry, just days before a fresh set of 25 percent import taxes was set to kick in on automotive components. The trip, on the eve of his 100th day in office, came as Americans take an increasingly dim view of Trump's economic stewardship, with indications his tariffs will weigh on growth and could drive up inflation and unemployment. In his latest partial reversal of tariff policies, the Republican president agreed to give carmakers two years to boost the percentage of domestic components in vehicles assembled domestically. It will allow them to offset tariffs for imported auto parts used in US-assembled vehicles equal to 3.75 percent of the total value of the Manufacturer's Suggested Retail Price of vehicles they build in the US through April 2026, and 2.5 percent of US production through April 30, 2027. Auto industry leaders had lobbied the administration furiously during the weeks since Trump first unveiled his 25 percent tariffs on imported vehicles and auto parts. The levies, aimed at forcing automakers to reshore manufacturing domestically, had threatened to scramble a North American automotive production network integrated across the US, Canada and Mexico. It offers the industry a 'little relief' as companies invest in more US production, Trump said as he left Washington for Michigan. 'We just wanted to help them ... if they can't get parts, we didn't want to penalize them.' The White House said the change will not affect the 25 percent tariffs imposed last month on the 8 million vehicles the United States imports annually. Autos Drive America, a group representing Toyota Motor, Volkswagen, Hyundai and nine other foreign automakers, said Trump's order provided some relief 'but more must be done in order to turbocharge the US auto industry.' MORE TARIFF UNCERTAINTY Candace Laing, president of the Canadian Chamber of Commerce, said the tariff fix fell short of what companies in the deeply integrated North American industry needed. 'Only an end to tariffs provides real relief. Ongoing ups and downs perpetuate uncertainty, and uncertainty drives away business for both Canada and the U.S,' she said in a statement. The uncertainty unleashed across the auto sector by Trump's tariffs remained on full display Tuesday when GM pulled its annual forecast even as it reported strong quarterly sales and profit. In an unusual move, the carmaker also opted to delay a scheduled conference call with analysts until later in the week, after the details of tariff changes were known. Meanwhile, US Commerce Secretary Howard Lutnick told CNBC he had reached a deal with one foreign power that should permanently ease the 'reciprocal' tariffs Trump plans to impose. Lutnick declined to identify the country, saying the deal was pending local approvals. 'I have a deal done ... but I need to wait for their prime minister and their parliament to give its approval,' he said. White House officials had no further comment on the country in question, but Trump struck an upbeat tone about a deal with India, telling reporters: 'India is coming along great. I think we'll have a deal with India.' Lutnick's comments helped further lift stock prices that had been battered by Trump's moves to reshape global trade and force goods makers to shift production to the US. The benchmark S&P 500 Index closed 0.6 percent higher for a sixth day of gains, its longest streak of gains since November. WRONG ON EVERY PREDICTION Trump and his team aim to strike 90 trade deals during a 90-day pause on his reciprocal tariffs announced earlier in April. His administration has repeatedly said it was negotiating bilateral trade deals with dozens of countries. A chief Trump goal is to bring down a massive US goods trade deficit, which shot to a record in March on a surge of imports aimed at front-running the levies. Trump's aggressive trade stance has cascaded through the global economy since his return to office in January, and the 90-day pause was unveiled after fears of recession and inflation sent financial markets into a tailspin. Easing the impact of auto levies is Trump's latest move to show flexibility on tariffs which have sown turmoil in financial markets, created uncertainty for businesses and sparked fears of a sharp economic slowdown. A Reuters/Ipsos poll published Tuesday showed just 36 percent of respondents approve of his economic stewardship, the lowest level in his current term or in his 2017-2021 presidency. Meanwhile, the US will release the first quarterly report on US gross domestic product during Trump's term on Wednesday. It is expected to reflect a large drag from his tariffs, mostly from a record surge in imports as companies and consumers front-loaded purchases of foreign goods to try to beat the new levies. The economy is expected to have expanded at a 0.3 percent annualized rate from January through March, according to a Reuters poll of economists, down from 2.4 percent in the final three months of 2024. American and global companies are increasingly sounding the alarm about the tariffs' effects on their ability to plan. UPS on Tuesday said it would cut 20,000 jobs to lower costs, while US ketchup maker Kraft Heinz and Swedish appliances maker Electrolux were among companies citing tariff headwinds. About 40 companies worldwide have pulled or lowered their forward guidance in the first two weeks of first-quarter earnings season, a Reuters analysis showed. 'Every single prediction has been proved to be wrong,' Yannick Fierling, Electrolux CEO, told Reuters. 'I'm surprised if people are claiming they have a view where tariffs are going.'
Japan Times
30-04-2025
- Automotive
- Japan Times
Trump eases auto tariff burden as Lutnick touts foreign trade deal
U.S. President Donald Trump signed a pair of orders to soften the blow of his auto tariffs on Tuesday with a mix of credits and relief from other levies on materials, and his trade team touted its first deal with a foreign trading partner, developments that eased investor worries about Trump's erratic trade policies. The change comes the day Trump arrived in Michigan, cradle of the U.S. auto industry, and just days before a fresh set of 25% import taxes was set to kick in on automotive components. The trip, on the eve of his 100th day in office, comes as Americans take an increasingly dim view of Trump's economic stewardship, with indications his tariffs will weigh on growth and could drive up inflation and unemployment. In his latest partial reversal of tariff policies, the Republican president agreed to provide carmakers with credits for up to 15% of the value of vehicles assembled domestically. These could be applied against the value of imported parts, allowing time to bring supply chains back home. Auto industry leaders had lobbied the administration furiously during the weeks since Trump first unveiled his 25% tariffs on imported vehicles and auto parts. The levies, aimed at forcing automakers to reshore manufacturing domestically, had threatened to scramble a North American automotive production network integrated across the U.S., Canada and Mexico. It offers the industry a "little relief" as companies invest in more U.S. production, Trump said as he left Washington for Michigan. "We just wanted to help them. ... If they can't get parts, we didn't want to penalize them." The White House noted the move does not soften the 25% tariffs imposed last month on the 8 million vehicles the United States imports annually. Autos Drive America, a group representing Toyota, Volkswagen, Hyundai and nine other foreign automakers, said Trump's order provided some relief "but more must be done in order to turbocharge the U.S. auto industry." The uncertainty unleashed across the auto sector by Trump's tariffs remained on full display Tuesday when GM pulled its annual forecast even as it reported strong quarterly sales and profit. In an unusual move, the carmaker also opted to delay a scheduled conference call with analysts until later in the week, after the details of tariff changes were known. Meanwhile, U.S. Commerce Secretary Howard Lutnick told CNBC he had reached one deal with a foreign power that should permanently ease the "reciprocal" tariffs Trump plans to impose. Lutnick declined to identify the country, saying the deal was pending local approvals. "I have a deal done ... but I need to wait for their prime minister and their parliament to give its approval," Lutnick said. Lutnick's comments helped further lift stock prices that had been battered by Trump's moves to reshape global trade and force goods makers to shift production to the U.S. The benchmark S&P 500 Index closed 0.6% higher for a sixth day of gains, its longest streak of gains since November. Trump and his team are aiming to strike 90 trade deals during a 90-day pause on his reciprocal tariffs announced earlier in April. His administration has repeatedly said it was negotiating bilateral trade deals with dozens of countries. A chief Trump goal is to bring down a massive U.S. goods trade deficit, which shot to a record in March on a surge of imports aimed at front-running the levies. Trump's aggressive trade policies have cascaded through the global economy since his return to the White House in January, and the 90-day pause was announced after financial markets went into a tailspin over fears of recession and inflation, among other factors. Softening the impact of auto levies is his administration's latest move to show flexibility on tariffs which have sown turmoil in financial markets, created uncertainty for businesses and sparked fears of a sharp economic slowdown. A Reuters/Ipsos poll published Tuesday showed just 36% of respondents approve of his economic stewardship, the lowest level in his current term or in his 2017-2021 presidency. Meanwhile, the first quarterly report on U.S. gross domestic product covering Trump's term is due out on Wednesday. It is expected to reflect a large drag from the effect of his tariffs, mostly from a record surge in imports as companies and consumers front-loaded purchases of foreign goods to try to beat the new levies. The economy was forecast to have expanded at just a 0.3% annualized rate from January through March, according to a Reuters poll of economists, down from 2.4% in the final three months of 2024. American and global companies are increasingly sounding the alarm about the tariffs' effects. UPS on Tuesday said it would cut 20,000 jobs to lower costs, while General Motors pulled its outlook and pushed its investor call to Thursday pending possible changes to trade policy. Also citing tariffs headwinds were American ketchup maker Kraft Heinz and Swedish appliances maker Electrolux, further evidence that a chaotic trade policy is taking a major toll on companies' ability to plan beyond the immediate term. About 40 companies worldwide have pulled or lowered their forward guidance in the first two weeks of first-quarter earnings season, an analysis showed. "Every single prediction has been proved to be wrong," said Electrolux CEO Yannick Fierling. "I'm surprised if people are claiming they have a view where tariffs are going."
Yahoo
26-03-2025
- Automotive
- Yahoo
Trump: All imported autos face 25% tariff beginning April 2
President Donald Trump signed an executive order Wednesday imposing a 25% tariffs on all cars and light duty trucks imported into the U.S. beginning April 2, saying it would force more automakers to move into the country and create jobs. Automakers, including the Detroit Three, have been warning for weeks that Trump's threatened tariffs could hurt their businesses and increase prices even as analysts have said they could result in a drop in auto sales. "You're going to see prices coming down," Trump said, arguing that his tariff threat is already driving companies to open more plants to make cars in the U.S., including one he said Honda plans to expand in Indiana. "We're already setting records for new plants." "It's off to the races. I think our automobile business will flourish like it's never flourished before," Trump said. Trump made it clear that the only cars and trucks made inside the U.S. are exempt from the tariff. He also appeared to indicate that his tariffs are also intended to impact the supply lines of American car companies including General Motors, Ford and Stellantis that see the vehicle assembly process move from plants in Canada and Mexico and ultimately back to the U.S. "It's ridiculous," he said of the current supply system. "This is a very simple system." Where Trump in the recent past has postponed auto tariffs, he said he wouldn't do that in this case. "This is permanent, 100%," he said. An aide said the tariffs are expected to produce $100 billion a year in revenue for the federal government. Trump pegged it at potentially more than six times that over two years' time. The Detroit automakers did not immediately provide a reaction to the news, but Autos Drive America, a group that represents the U.S. operations of international carmakers whose members collectively produce nearly half the vehicles made in the United States, issued a statement indicating concern that this move will raise new car prices. 'At a time when cost is the number one concern for American car buyers, U.S. automakers are working to provide a range of affordable vehicles for consumers,' Jennifer Safavian, CEO of Autos Drive America, said in a statement. 'The tariffs imposed today will make it more expensive to produce and sell cars in the United States, ultimately leading to higher prices, fewer options for consumers, and fewer manufacturing jobs in the U.S.' Megan Gardner, spokesperson for the group that represents auto parts suppliers called MEMA, told the Free Press late Wednesday, 'We will not have a formal statement until we are able to review the Executive Orders.' 'The biggest question to me that was not answered here was did he just rip up USMCA?' Catherine Karol, a Michigan-based attorney specializing in automotive legal issues at Butzel told the Detroit Free Press. 'The number of imported vehicles to the U.S. is in the millions, and a large portion of those come from U.S. manufacturing plants in Mexico and Canada.' On the campaign trail ahead of last November's election, Trump repeatedly praised the use of tariffs as a way to rebalance trade, saying that other countries, including Canada and Mexico, as well as others, had long been taking advantage of the U.S. On Feb. 1, he appeared to follow through with his promise, signing an order to impose 25% on most imports from Canada and Mexico, which, if enacted, threatened Michigan's auto industry. Analysts estimated that, given a supply chain that sees components and auto assembly often crisscross North American borders almost a dozen times in the making of a single automobile, a new car cost could increase as much as $9,000 if not more, potentially crippling sales. Trump, however, argued that tariffs would not only force manufacturers to bring jobs back to the U.S. but also result in increased revenue for the federal government. Before those Feb. 1 tariffs went into effect, Trump delayed them for a month until early March. Then, on March 5, just before they again were expected to be put in place, he announced a 30-day reprieve for U.S. automakers under the existing U.S.-Mexico-Canada (USMCA) free trade agreement he signed into law during his first term in 2020. He then paused much of the other import tariffs he had threatened for other products covered by USMCA. That gave automakers a chance to try to get Trump and his administration to reconsider altogether, though the president went ahead with plans to hike tariffs on imported aluminum and steel, tariffs on Chinese imports and tariffs on any country that imported oil from Venezuela. He also promised a round of worldwide tariffs to reciprocate against those on U.S. goods from other countries beginning on April 2, a day he began to refer to as "liberation day." In Michigan, business leaders began to complain that rather than the boon they had hoped for from Trump's election, they were unsettled by an uncertain economic picture and worries about a possible recession. "What we're hearing is it's beginning to look a lot like COVID," Detroit Regional Chamber Sandy Baruah said at a panel discussion this month, referring to the throttled supply lines, upended demand and confusion that came with the pandemic's outbreak five years ago. "Business leaders are struggling with a level of uncertainty they weren't expecting and weren't planning for," he said. On Monday, the Trump White House indicated that sector-specific tariffs might not be part of the April 2 announcement and Trump himself said he might have something sooner to say on auto tariffs, though it was unclear at the time if he were talking about those from just Canada and Mexico or those worldwide. "We'll be announcing that fairly soon. Over the next few days, probably," the president said. As for countries importing the most cars and light duty trucks into the U.S. last year in terms of dollar-value, MichAuto, an association that works to promote and expand the industry, said they were Mexico ($50 billion), Japan ($41 billion), South Korea ($38 billion), Canada ($28 billion) and Germany ($25 billion). But that doesn't necessarily take into account the value of all the various components and preliminary assemblies that move across the U.S. borders with Mexico and Canada as part of the integrated supply chain for vehicles made especially by the Detroit automakers. Ford Motor Co. CEO Jim Farley, for one, has stated his concern that imposing tariffs unilaterally on Mexico and Canada, where Ford gets a lot of its parts and makes some products, will unduly hurt its bottom line, despite the fact that 80% of its vehicles and all of its trucks are made in the U.S., while having a more limited impact on automakers based in South Korea, Japan and Europe. "Let's be real honest: Long term, a 25% tariff across the Mexico and Canada borders would blow a hole in the U.S. industry that we've never seen," Farley said during a Wall Street event last month. "Frankly, it gives free rein to South Korean, Japanese and European companies that are bringing 1.5 million to 2 million vehicles into the U.S. that wouldn't be subject to those Mexican and Canadian tariffs. It would be one of the biggest windfalls for those companies ever." In an 11th-hour appeal to the White House this week, executives at Detroit automakers General Motors and Ford Motor Co. were either traveling to Washington, D.C. or making calls to Trump administration officials to discuss the dire consequences tariffs could have on their companies. The Detroit Free Press learned Wednesday that Ford Executive Chair Bill Ford was heading to the nation's capital for a series of meetings with the administration. Similarly, GM CEO and Chair Mary Barra was having phone meetings with Trump administration members. Information on both Ford's meetings as well as Barra's was according to four sources familiar with their plans. The people asked not to be named because they are not authorized to share the information publicly. It was unclear what contact, if any, Stellantis had with the Trump administration ahead of the announcement. Spokespeople for all three automakers declined to comment on the record regarding any effort to soften, delay or deter tariffs. Detroit automakers had been regularly talking with or meeting in person with either Trump or his administration since earlier this month, the sources said. The meetings were also characterized as challenging for the automakers at times, as they attempted to educate administration officials on a complex manufacturing and supply chain that can be difficult for those outside the industry to understand, according to two of the sources. Auto executives have also explained how much it would impact their costs to have 25% tariffs in place on Canada and Mexico and that any efforts to relocate significant portions of their manufacturing base to the U.S. would take billions of dollars and years to do. On Wednesday, an analyst with Cox Automotive estimated that tariffs and the volatility they would cause could result in 700,000 fewer vehicles being sold in the U.S. this year. Contact Todd Spangler: tspangler@ Follow him on Twitter@tsspangler. This article originally appeared on Detroit Free Press: Trump: All imported autos face 25% tariff beginning April 2
