US President Donald Trump has suggested temporarily exempting the auto industry from tariffs he previously imposed on the sector, as carmakers seek time to adjust their supply chains. The move aims to help automakers relocate production from Canada and Mexico.
Ford, General Motors, and Stellantis have backed this goal of increased domestic production. However, experts warn that broad tariffs on parts could undermine this objective, given the complexities involved in reconfiguring supply chains.
The US president’s statement comes amid ongoing tariff reversals and concerns about a possible recession from Wall Street economists. Trump has recently adjusted his trade policies, reducing tariffs on some countries and increasing them on others.
The S&P 500 stock index showed an increase of 0.8% on Monday but remains down nearly 8% this year. Analysts have expressed uncertainty over Trump’s intentions and end goals, citing the risk of damaging consumer and business confidence.
European Commissioner for Trade and Economic Security Maroš Šefčovič stated that the EU remains ready to negotiate a fair deal with the US, including reciprocity on industrial goods. Apple CEO Tim Cook also received support from Trump, although details remain unclear.
The temporary reprieve on electronics tariffs has lifted Apple’s stock price by 2%, providing breathing room for the company to assess ways to minimize the trade war’s impact on its iPhone sales. However, uncertainty about future tariff changes remains, potentially affecting Apple’s production plans in India and other countries.
Source: https://fortune.com/2025/04/14/trump-auto-tariffs-pause-again