U.S. President Donald Trump hit pause on controversial auto tariffs targeting Canada and Mexico this week, giving a temporary breather to major carmakers—but tensions with Ottawa remain high after a call with Prime Minister Justin Trudeau failed to break the ice. 🔥
The White House announced a one-month exemption from levies for vehicles traded under the USMCA, the North American free trade pact, following intense lobbying by Detroit's "Big Three": Stellantis, Ford, and General Motors. Shares of all three automakers jumped over 6% post-announcement. 📈
"They made the ask, and the president is happy to do it," said White House Press Secretary Karoline Leavitt. Meanwhile, Wall Street breathed a sigh of relief as markets rebounded from Tuesday's slump caused by Trump's initial 25% tariffs on imports from Canada and Mexico.
But the trade rollercoaster isn\u2019t over. Despite Canada contributing less than 1% of the U.S. illicit fentanyl supply (per both nations' data), Trump doubled down on claims about cross-border drug trafficking. Trudeau\u2019s counter-retaliation plans and Mexico\u2019s upcoming Sunday rally to announce its response signal a rocky road ahead. 🛑
While automakers cheer the short-term win, analysts warn the broader tariff drama could still hit consumers\u2019 wallets and strain North American alliances. Stay tuned—this trade saga is far from out of gas. ⛽
