Trump may loosen auto tariffs for Mexico, Canada

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Changes to Mexico and Canada tariffs are anticipated in an upcoming announcement from President Donald Trump, according to Commerce Secretary Howard Lutnick in recent statements. The administration is considering exempting specific products, particularly vehicles meeting USMCA requirements, from the current 25 percent tariff.

Speaking with Bloomberg TV, Lutnick emphasized that the administration continues to prioritize combating fentanyl trafficking across borders, using tariffs as leverage to secure cooperation from Mexico and Canada on border security matters.

The Commerce Secretary confirmed the administration’s ongoing strategy of implementing reciprocal tariffs on international imports, describing it as crucial for establishing equitable trade relationships. These new tariffs are scheduled for announcement on April 2, though implementation timelines may vary from weeks to months.

Commerce Secretary @howardlutnick delivers a message to Canada and Mexico: "If we are so important to you, why is the border wide open? Who do we have to build a wall? Why aren't you building a wall? Why aren't you respecting America?" pic.twitter.com/SmoZ4OwOMM

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“There are going to be tariffs — let’s be clear — but what [Trump] is thinking about is which sections of the market he may consider giving relief to until we get to, of course, April 2,” Lutnick said. “I think it is going to be in the middle somewhere.”

While maintaining the existing 25 percent tariff structure on imported goods, the administration is evaluating potential exceptions for products that satisfy USMCA guidelines. The automotive sector appears to be a primary candidate for exemption, as North American manufacturers largely comply with the agreement’s regional content specifications, according to Lutnick. He did not elaborate on whether additional sectors might receive similar consideration.

These developments indicate the administration’s willingness to engage in trade discussions with Canada and Mexico while maintaining its stance on border security and drug trafficking concerns.

This video explains the trade war with Canada, Mexico, and China. pic.twitter.com/L0Mp0ppCFW

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