President Donald Trump delayed prices on car imports from Canada and Mexico for a month after requests from the leaders of the three major car manufacturers – General Motors, Ford and Stellantis – according to the Politico.
The stay comes less than two days after Trump issued 25% of prices on all the goods of the American neighbors, who had previously been in the franchise of rights under a North American trade agreement (Sometimes characterized as Alena 2.0) negotiated during its first mandate.
Car manufacturers have complex supply chains and operate several manufacturing facilities in Mexico and Canada. For example, GM produces his Chevy Equinox in Mexico and Canada, and Lincoln Nautilus SUVs from Ford and the Stellantis loaders are made in Ontario. Several car suppliers also have factories in both countries.
The prices of cars are already at historical heights, and prices threaten to send prices for arrow stickers up to $ 12,000, according to To Jeff Schott, principal researcher at the Peterson Institute for International Economics, who was interviewed by the Detroit Free Press. This could lead to less request, leaving dealers trapped with unaffordable cars on their lots.
In an address at Congress on Tuesday, Trump urged manufacturers to move their operations in the United States. Ford CEO Jim Farley said last month during an investor interrogation, the company has no excess capacity in its factories to move production. Farley noted that Ford could resist short -term prices, but if they persisted, they “would blow a hole in American industry that we have never seen”.
Until February, almost half of all new vehicles sold in the United States were built in the United States, but 17.4% of them were built in Mexico and 7.4% in Canada, according to Edmunds.com.
