Just weeks after his second inauguration, President Donald Trump signed an executive order on February 1st imposing import tariffs on Canada and Mexico. They were initially slated to go into effect on February 4th, but eleventh-hour deals on border security with both countries delayed them. Now, we’re getting toward the end of the delays, and they’re scheduled to go into effect on Tuesday, March 4th.
It’s proven difficult to predict what will really happen with Trump tariffs, but a Fox News interview with U.S. Commerce Secretary Howard Lutnick over the weekend has given us an idea of the administration’s near-term plans. The tariff discussion in the interview below starts at the 4:51 mark.
“Both Mexico and Canada have done a reasonable job on the border,” Lutnick said regarding Trump’s demands that his North American neighbors do more to prevent illegal border crossings and the flow of fentanyl into the States. “We’ve had the lowest crossings ever because of [Trump’s] ability to negotiate with Canada and Mexico.”
“There are going to be tariffs on Tuesday, on Mexico and Canada,” Lutnick said, getting into the specifics of the planned tariffs. “Exactly what they are; we’re going to leave that for the president and his team to negotiate.” Lutnick called the tariffs a “fluid situation,” implying that Trump could decide on a rate different from the 25 percent originally planned.
“[Trump] is focused on bringing manufacturing back to America,” Lutnick said, pivoting specifically to auto manufacturing. “We want cars made here. We are going to reinvigorate Michigan. We’re gonna reinvigorate Ohio. This president is totally focused on building America back, and we’re going to use tariffs to create fairness.”
So, it appears that new tariffs will go into effect on Tuesday, but the rates of the tariffs could remain unknown until the moment they go into place. We also can’t rule out the possibility that they’ll be delayed again at the last minute, pending negotiations with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum.
Comments
I understand the value of these articles. I appreciate and read them, but we don’t know what tariffs President Trump will apply, by how much, on whom, or for how long. It’s certainly valid to discuss this, but I see far too many of these articles turn into bitter fights among community members, and I find that tragic. My only request is that this site remains a GM car news site, keeping up with the excellent standards that have been maintained over the years. Thanks.
I hear you and stayed away from politics for years myself. Unfortunately, the powers that be in the world have injected politics into absolutely everything.
Cars have always been “political.” They interface with the government on public roads. Since Prohibition, they have been used as instruments of crime. When one turns the key it’s the government that permits its emissions and regulates its operation. Traffic Codes are hundreds and hundreds of pages in length. A car is inherently political.
It’s turning into GMI. I quit going there at least 15 years ago because it was all trolls. The number 1 troll was a San Francisco guy name Mercurio.
Many go off not with all the facts or looking how this worked in the past.
Generally the Tariffs start and then all parties renegotiate.
Already a number of companies are committing to bring jobs back to America.
But many of these stories are just political bait for people ignorant of what all is in play to rant on.
Committing to bring them back and actually doing that are two different things. Companies won’t make any final decisions until this tariff issue sorts itself out.
The last time tariffs were used in any significant way was over a hundred years ago. As the world economy coalesced during the twentieth century, it became clear that cooperation between trading partners was far more effective.
Charging tariffs on cars in order to get them produced here? Great idea, but it takes time to build a new factory or convert an existing one in order to begin manufacturing cars–or products of any kind–here. Anyone could see the chaos that would ensue if giant tariffs were implemented within a month of his taking office.
A far more rational approach would have been to use the threat of large tariffs in the future, with an escalating set of tariffs beforehand–and a year’s notice before any tariffs were to go into effect, so suppliers could make plans.
If GM built all there vehicles that are sold in the states here in the states, then GM Authority wouldn’t have to post this article. The real story isn’t about tariffs, but rather it’s greed from these corporations and now it’s coming back to bite them. Looks like Honda is going to build the next gen Honda Civic Hybrid in the states and not in Mexico. Maybe GM should do the same.
That’s where their Civic assembly has been for the past decade. They assemble their subcompacts in MX, as well as the 2 vehicles that GM builds for them.
I’m sure if Barra called Trump and said they are going to move 350 or 400k units of production from Mexico to the US as well as move Buick production to the US from Korea and China this issue would end today. GM has more than enough spare capacity in their US plants to absorb this production and then some.
Trump has no issue with vehicles coming from South Korea. That’s why Kia/Hyundai have been silent. He just has issues with Mexico and Canada.
Because Korea has a free trade agreement with the US. Its called KORUS.
The US has a free trade agreement with Canada and Mexico…..with Trump’s signature on it…..which appears to be worthless as he basically has wiped his butt with it.
But who can afford a 100k Buick! Not many. Money is made on volume. Every one from store front lawyers to grocers to small shops, bakeries, Primary Care physicians, Walmart, mechanics, plumbers, McDonalds——it’s about getting people in the door or moving product. Walmart would go under very quickly if it sold one $1200 tv a week.
If gm cannot find a way to build a $50,000 Envision in the US and make a profit, the management needs to be fired.
If it so easy why don’t you post the numbers and figures?
Define greed. I have a 401K and I like it when companies make money. The more they make, the more I make. What do you think drives the stock market? If people don’t make money, they don’t spend money. If people don’t spend money, companies don’t invest in future growth. If companies don’t hire, there are no new jobs.
GM and Ford have been hiring; the problem is they have been hiring in Mexico and China while cutting jobs in the US.
I’m waiting for this story, “Honda to Move Manufacturing to USA. GM Has No Answer.”
LOL
Cory – From Reuters X Page. “Honda decided to produce its next-generation Civic hybrid in the US state of Indiana, instead of Mexico, to avoid potential tariffs on one of its top-selling car models, according to three people familiar with the matter”.
They aren’t unionized. They can have crap loads of temp workers and lay them off at will. And they’re not paying regular employees UAW wages either. Lastly, I would guess that most of the engineering and many of the parts come from overseas. The average salary in Japan is less than half of what it is in the US.
Joe G – They are hiring Americans. They are going to assemble the vehicles in Indiana. They aren’t going to do it in Mexico. I don’t see anything wrong with this.
I agree union or not, they will be American jobs. I wish people would stop focusing so much on union vs non-union. If it brings jobs back to the US thats a good thing. Not everyone is fortunate enough to be part of a union.
Honda significantly raised their US wages in light of the UAW contract a few years ago. Regarding the temp workers, I’m sure if the prospect of tens of thousands of new members for the UAW will cause Fain to capitulate on hiring temp workers at a lower starting wage.
Next Gen Civic isn’t going to start production until 2028. That sounds like Honda making an announcement to please Trump for now.
The CEO of Hyundai is increasing investments into the US.
I like the idea of bringing back US jobs, but perhaps a domestic content rule would be better (e.g. 75 percent of all vehicles sold in the US must be built here and have 75 percent US content)
Should that same logic apply to appliances, electronics, clothing, tools, shoes, furniture, cell phones?
The auto business is a global business and will remain a global business. Companies will move production and change supplier relationships in ways that respond to financial and political incentives. This is true for all auto companies and suppliers. Tariffs will enter into the equation, but will not change a global industry into the American automobile business of the 1950’s and 1960’s. Those days are gone.
The American auto market was also very different back in the 1950s and 1960s. Those days, the American brands dominated the US automarket. Many of them brands long gone. Today its a mix of American, Japanese, Korean, German, English, Swedish, and Italians. We will never go back to those days. You are right in that sense.
That being said, the point of the tariffs isn’t to force people into buying from the Detroit Three + Tesla. The point is to encourage auto manufacturers, foreign and domestic alike, to manufacture and source in the US. Much like Honda, despite being a Japanese brand, consistently tops the American Made index, other brands should be doing the same. Hyundai, announcing increased investment in the US as well as the recent announcement from Taiwans TSMC investing 100 billion into expanding the Arizona facility, is what they are trying to achieve. It will still very much be a global auto market. But a global automarket incentivized to invest in the US. Brands like Honda, Toyota, Subaru, and Hyundai are already so entrenched into the US market they probably already well positioned to move funds around to align with the tariffs goals.
Trump has said he had no issues with Ch!ne$e automakers selling in the US. As long as they manufacture them here.
You know, the term “Chinese” isn’t a slur, there’s no need to try to get around censors. It’s telling that you think it is, though.
Apparently it is these days. This is the second time I had to post that comment because it kept getting slapped down and by adding special characters it finally made it through.
People are so quick to call the current political party authoritarian yet much of the results of me having to do things like this to bypass censorship is the result of the last 4 years. Its only a matter of time before people start knocking on your door over a comment you posted.
You get what you voted for.
Who are the Detroit three?
Lets not try to sanitize the conversation because it appears political. Straight up facts the guy in charge is a mental midget who has filed bankruptcy multiple times failed at over twenty business ventures refuses to release his taxes and has his college transcripts sealed. Oh yeah convicted criminal and impeached twice. Who would be dumb enough to hire him as their financial planner?
He’s a good Bible salesman. Like the fellow in Oh Brother Where Art Thou.
The golden bible, golden tennis shoes and cheap clothing line made in chi—na!
Don’t forget the 15+ patents Ivanka has in china for her slave labor beauty products and clothes. Plus the Chinese business that the Kushner fraud family has..there’s a reason he isn’t targeting China as hard. And Elon’s tesla factory in China.
Um imbecil na presidência, parabéns América vcs votaram muito bem, o império terrorista está ruindo.
Jose, I don’t speak the language but these two words “imbecil na presidência” are sufficient for me to agree with you.
Some of you guys are so short sighted. Again, the world was moving away from the Bretton Woods agreement and way of doing global business. WWII was a LONG time ago and things change. Politics change, demographics change, where Earth’s resources are located, where they need to go for processing/manufacturing, and where they need to go to end users changes. The has been slowly coming and it was/is inevitable. Supply chains will be more regional, think North American region, but more likely North America and Central America regionally working together, maybe even down into South America. Then other regions in the world are also going to reshape their own supply chains, too.
Tariffs will be a long term part of of all this, and hopefully also getting rid of income and property taxes in the US, which are a lot more unfair than taxes on purchases (via tariffs, VAT, sales, etc), IMHO.
You are repeating what Peter Zeihan has been predicting.
Yes, and he’s been right about a lot of things.
Oh I like his work. I think he is on the money with alot of things though I don’t fully agree with the speed and timing of some of his predictions, he has predicted several events that have happened or we are seeing happening at the moment.
As for this specific event, I don’t think it will be fully regionalized locally as he is predicting. Certainly Mexico will be the biggest beneficiary. But I think Japan, Korea, and maybe even the UK are going to still be economically joined at the hip of the US. Japan and Korea are very dependent on the US market especially in the automotive industry and will look to further entrench themselves into the US market. Although closer ties with Japan and Korea is another thing Zeihan has made mention of.
So, no income or property taxes. Tariffs force manufacturers to build plants in the U.S., eliminating said tariffs. Where does the money come from then? Speaking of shortsighted….
In the case of gm, there is nobody to blame but Barra. Since her tenure, every volume vehicle (or their DeFacto replacement) with the exception of trucks have been moved to low-wage nations. Heck, even the best selling EVs- the Blazer and Equinox- are built in Mexico. This includes the Sonic, Cruise, Equinox, Terrain, that were once made in US plants. gm now imports almost half of their vehicles from low-wage nations while US plants have been assigned low-volume EV product and gm now employs less hourly workers than Ford and maybe even Toyota. GM thought they were being clever but now the chickens have come home to roost.
Only an idiot would believe income and property taxes are going away. To make that happen corporate taxes would have to revert back to 92 percent which they were the first half of the 1900s. Orange moron wants to take them even lower to 15 percent and the difference cannot mathematically happen with tariffs!
Tariffs are paid by the US importers and passed on to the consumers. For all this (no more income taxes) to work, the tariff revenue would have to be gigantic, consumers would have to be happy paying for the increase (effectively turning income tax into a “tariff tax”) allowing businesses to keep things status quo.
If the US does move manufacturing, supply chains, procurement etc.. all within the US, tariff revenue would drop restoring the need for income tax.
Meanwhile they are looking into lifting sanctions on Russia. Government contracts are being given to Musk organizations. This is a corrupt government and they DO NOT serve the American people.
Who cares? Just wait and see, instead of getting heartburn over something you have no control over. Go back to work.
Check out the stock market. It cares. For a guy who said he was going to fix the economy on day one, well, turns out to that that was just another bit of trump doublespeak–where what happens is the exact opposite of what he said he’d make happen. Anybody willing to admit they got bamboozled yet?
Hey, look at all that theft and graft. Who cares? What a DOPE!
The Smoot-Hawley Tariff Act was introduced in 1929. It didn’t bring on the Great Depression but it made it much worse.
Hey Mary assemble American brand cars and trucks in the GOOD OLD AMERICA with ice …