President Donald Trump will soon announce his decision about the tariffs he placed on Canada and Mexico earlier this week. Commerce Secretary Howard Lutnick said there may be some relief for cars and other industries. He mentioned on Bloomberg Television that Trump is thinking about which parts of the market might receive lower tariffs.
While some sectors may still face a 25% tariff increase, others might be excluded from it. “It could be cars or other products,” Lutnick stated. He also noted that the current tariffs are aimed at stopping the flow of the dangerous drug fentanyl. There will be a bigger set of trade actions coming next month.
Lutnick expects that the changes will occur soon, “this afternoon,” to adjust the tariffs for certain products that meet rules under the USMCA agreement that Trump made with Canada and Mexico during his first term as president.
After Lutnick’s comments, shares of big American car companies like Ford, General Motors, and Stellantis went up. GM shares jumped more than 5%, Ford rose about 2%, and Stellantis went up 7% in European markets.
Lutnick brushed off recent data showing a negative impact on confidence in business due to Trump’s policies. He emphasized that many companies are investing in the U.S., signaling strong confidence. “Trillions of dollars are being invested in American manufacturing, which shows that good times are coming,” he said.
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