President Donald Trump has delayed the rates on car imports from Canada and Mexico for a month after requests from drivers at the big three car manufacturers – General Motors, Ford and Stellantis – according to Politics.
The postponement comes less than two days after Trump issued 25% rates on all goods from the US neighbors, which were previously conscientious under an North American Trade Agreement (Sometimes characterized as NAFTA 2.0) negotiated during its first term.
The car manufacturers have complicated supply chains and operate various manufacturing facilities in Mexico and Canada. For example, GM produces its Chevy Equinox in Mexico and Canada, and both Ford’s Lincoln Nautilus SUVs and Stellantis’ Dodge chargers are made in Ontario. Several car suppliers also have factories in the two countries.
Motor prices are already at historical highlights, and rates threaten to send sticker prices with as much as $ 12,000, according to To Jeff Schott, senior fellow of the Peterson Institute for International Economics, which was interviewed by the Detroit Free Press. This can lead to less demand, which puts traders with unaffordable cars on their lots.
In a speech to Congress Tuesday, Trump requested producers to move their operations to the United States. Ford CEO Jim Farley said during an investor discussion last month that the company does not have an excessive capacity at its plants to shift production. Farley noted that Ford could withstand rates in short term rates, but if they persisted, they would blow a hole in the American industry we had never seen. “
Through February, almost half of all new vehicles sold in the US were built in the US, but 17.4% of them were built in Mexico, and 7.4% in Canada, according to data from Edmunds.com.
(Tagstotranslate) Ford (T) GM (T) Stellantis (T) Rates
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