MARCH 6, 2025: Uncertainty about President Trump's plans for tariffs on the
United States' biggest trading partners continues as he postponed tariffs on
most products coming from Mexico and Canada.
Trump announced on social media Thursday, March 6, that he would delay
tariffs on most goods coming from Mexico for one month, until April 2. Later
in the day he added Canada.
The move appears to build on a March 5 announcement of a one-month
reprieve on tariffs for the automotive industry on 25% tariffs on Canada and
Mexico. That tariff exemption applies to autos imported through the U.S.-
Mexico-Canada Agreement, which Trump signed in his first term.
Businesses and investors have expressed concern about the effects of tariffs
on the U.S. economy. Other countries don’t actually pay the tariffs; they are a
fee paid by the companies importing the goods. Importers will pass costs on,
likely resulting in more inflation.
The Conference Board nonpartisan think tank noted that together, goods
from Canada, Mexico, and China make up 41% of U.S. imports. The tariffs will
have a significant impact on U.S. grocery items, consumer packaging and
building materials, automotive vehicles and parts, electronics, and
manufacturing inputs including critical minerals.
The American Trucking Associations released a statement supporting efforts
to battle fentanyl and illegal immigration, but said the tariffs could lead to
unintended consequences in the form of high prices for goods and groceries.
The tariffs will affect trucking imports and exports as well as manufacturing,
pricing, profitability and volume, S&P Global Mobility predicted last month.
Commercial vehicle suppliers in the United States have little or no ability to
absorb 25% cost increases imposed on goods from Canada and Mexico, and
OEMs are only in a slightly better position. Moreover, some parts and
systems may cross the borders multiple times during the production
process. S&P Global Mobility estimates that the net impact of tariffs on new
U.S. medium- and heavy-duty truck prices could be around 9%.
The Wall
Street Journal reported on Feb. 27 that in reality, the government can’t flip
the switch on those kinds of tariffs overnight. Administration officials told
WSJ that it could take up to six months or even more, because it takes time to
analyze the tariffs and nontrade barriers of all the nations affected.
Effective March 12, imports of steel and aluminum will be subject to a 25%
tariff rate, according to a Trump announcement last month. This is an
increase from the previous 10% tariff on aluminum.
