The automotive sector : Temporarily escapes US customs duties

The automotive sector has been granted a month’s respite from the 25% tariffs imposed by the United States on imports from Canada and Mexico. 

The decision, announced by the White House on March 5th, is in response to pressure from US automotive giants such as General Motors, Ford and Stellantis, which are heavily dependent on North American supply chains.

According to experts, these taxes would have increased the price of cars by between $4,000 and $12,000, penalising both consumers and manufacturers. Industry leaders had warned that these protectionist measures risked destabilising employment and digging a ‘gaping hole in the American industrial fabric’.

A temporary decision that relieves the industry, but leaves uncertainty hanging over the future of trade relations in North America.