The government of President Donald Trump is considering giving relief to its 25 percent tariffs on imports from Canada and Mexico to products that comply with the commercial pact, including the automotive industry, according to Fuentes.
Two sources familiar with the discussions between the Trump administration and Canadian and Mexican officials said that the conversations point to exemptions for companies that comply with the rules of origin of the United States-México-Canada Agreement of 2020, directed to a large extent, but not exclusively, to car manufacturers.
Two sources of automobile manufacturers said a scenario would require a 30 -day exemption from tariffs, but car manufacturers would have to demonstrate plans to invest more in car production in the United States to remain exempt.
The details of the possible changes to the tariffs that entered into force on Tuesday are far from being agreed, the sources said.
Trump will decide on any final agreement and, since he assumed the position, he has chosen to impose tariffs when he has been given the option of backing.
Do not miss: Trump considers possible tariff exemption for some sectors to Mexico and Canada
Possible tariff pause to car manufacturers
25 percent levies on Mexican and Canadian products create particular problems for car manufacturers, which face massive increases in costs for parts and vehicles produced in Mexico and Canada to the US market.
An exemption of tariffs for cars and trucks that meet the complex rules of North American TMEC content for free access to US market tax would be a blessing for Detroit Ford, General Motors, and Stellantis cars manufacturers.
It would also benefit some automobile manufacturers of foreign brands with a great presence of production in the United States, including Honda and Toyota, while obliging some competitors who assemble cars in Mexico to pay 25 percent of US tariffs.
The agreement under consideration would also eliminate the 10 percent tariff on Canadian energy imports, such as crude oil and gasoline, which comply with the rules of origin of the TMEC, said one of the familiar sources with conversations.
The US Secretary of Commerce, Howard Lutnick, in an interview in Fox Business, said Trump was seeing the TMEC as a way to reach an agreement between Canada and Mexico “somehow intermediate.”
With EFE information.
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