Overview

• Canada announced a six-month tariff exemption for U.S.-made vehicles, contingent on automakers maintaining production facilities within Canada.
• President Trump hinted at potential temporary relief for auto parts tariffs, citing the need to give companies time to adapt supply chains and increase domestic production.
• The auto industry faces significant disruptions, including temporary layoffs of over 1,000 workers by Stellantis and General Motors across U.S. and Canadian facilities.
• Analysts warn that global supply chains, built over decades, cannot be restructured quickly, complicating efforts to comply with new trade policies.
• Tariffs are projected to increase manufacturing costs by billions, raising vehicle prices for consumers and potentially reducing new car sales in 2025.