Trump Might Exempt Auto Industry from Canadian and Mexican Tariffs, According to Lutnick
President Donald Trump may decide to exclude specific sectors from the 25% tariffs imposed on Canada and Mexico, as stated by Commerce Secretary Howard Lutnick during an interview with Bloomberg Television.
“The president has the authority to make this decision,” Lutnick mentioned. “There will be certain categories that could be excluded. It’s possible that autos, among others, might be left out.”
Lutnick noted that Trump is likely to consider excluding sectors that comply with the content provisions of the United States-Mexico-Canada trade agreement.
“From what I’ve gathered, the Big Three automakers claim they produce vehicles that meet USMCA compliance standards, which indicates they have adequate U.S. content to qualify under the USMCA agreement,” Lutnick said about Ford, General Motors, and Stellantis. “This is part of our negotiations, and the president is seriously contemplating this.”
Lutnick anticipates that the White House will issue an announcement later today, suggesting that any changes might reflect a compromise rather than a complete reversal.
— Spencer Kimball
Trump Acknowledges Tariffs May Cause ‘Minor Disruptions’
During a joint session of Congress, President Donald Trump recognized that his tariffs on key U.S. trading partners are likely to bring about “some minor disruptions.”
“Tariffs are aimed at making America wealthy again and restoring its greatness. Progress is underway, and it will happen relatively soon,” Trump articulated during his address on Tuesday evening.
“There may be some disruptions, but we can manage that,” Trump stated. “It won’t be significant.”
— Hakyung Kim
Tariffs Shake Up U.S. Stock Market
This week, the implementation of President Donald Trump’s tariffs has unsettled the U.S. stock market, as investors express concerns that these levies could impede economic growth.
The Dow, S&P 500, and Nasdaq Composite witnessed a decline of approximately 3% over Monday and Tuesday’s trading sessions. As a result, the blue-chip Dow is headed for its most challenging week since the regional banking crisis in March 2023, marking the most pronounced weekly loss for both the broad S&P 500 and tech-heavy Nasdaq since September.
Nevertheless, stock futures experienced a rebound on Wednesday morning amid growing optimism regarding a potential compromise on Trump’s import tax policies. Stay updated with live market developments throughout the day here.
The major indexes this week
Trump Expected to Announce Tariff Compromises for Canada and Mexico
President Donald Trump might reveal tariffs compromise agreements with Canada and Mexico as soon as Wednesday, potentially involving a reduction of at least some of the new 25% tariffs on imports from those countries, according to Commerce Secretary Howard Lutnick.
“Both Canada and Mexico have been in constant communication with me today, demonstrating their willingness to do better,” Lutnick remarked on Tuesday afternoon. “The President is attentive because he’s genuinely fair and reasonable. I believe he will reach an agreement with them,” he added during an appearance on “Fox Business.”
Trump has positioned tariffs as a powerful negotiating tool, citing concerns that the neighboring countries have not sufficiently curbed the entry of drugs and crime into the U.S.
— Kevin Breuninger, Sarah Min
Canada Seeks WTO Action Against U.S. Tariffs
Canada has turned to the World Trade Organization in response to the tariffs implemented by President Donald Trump.
Nadia Theodore, Canada’s ambassador to the WTO, stated that Ottawa has “requested WTO consultations” with the United States “concerning its unjustified tariffs on Canada.”
“The U.S. decision has left us with no choice but to act in order to safeguard Canadian interests,” Theodore conveyed in a LinkedIn post on Tuesday. “This wasn’t the outcome we anticipated, and we urge the U.S. administration to reconsider its tariffs.”
A WTO official has confirmed to CNBC that Canada has initiated consultations, which is the first step in the organization’s process of resolving trade disputes.
— Spencer Kimball
Chinese Officials Declare Readiness to ‘Fight Till the End’
Chinese officials are adopting a confrontational tone regarding the U.S. tariff escalations, including a post from the Chinese Embassy in the U.S. on X.
“If war is what the U.S. desires, whether it’s a tariff war, trade war, or any other kind of war, we are prepared to fight till the very end,” stated the post.
Lin Jian, spokesperson for China’s Foreign Ministry, echoed this sentiment, dismissing the U.S.’s rationale of combating fentanyl for the tariffs as a “weak justification.”
“If the U.S. has ulterior motives and aims to harm China’s interests, we are prepared to fight till the end. We urge the U.S. to stop its domineering approach and return to constructive dialogue and cooperation as soon as possible,” the spokesperson asserted.
— Jesse Pound
