Trump Weighs Pause Auto Tariffs to Ease Impact/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump said Monday he may temporarily pause his auto tariffs to give carmakers time to shift supply chains. The move would mark another shift in his volatile trade strategy, which has triggered market turbulence. Trump’s broader tariff plan remains intact but increasingly fluid as global pressures mount.
Trump Auto Tariffs: Quick Looks
- Possible Pause: Trump considers temporary exemption for automakers from 25% tariffs
- Reasoning: Automakers need time to shift production to the U.S.
- Supply Chain Focus: Many firms still rely on parts from Mexico, Canada, China
- Initial Tariff Plan: 25% on autos, described in March as “permanent”
- Flexibility Theme: Trump: “I don’t change my mind, but I’m flexible.”
- Market Reaction: S&P 500 still down 9% year-to-date; Treasury yields elevated
- China Tariffs: Remain high at 145%, with some electronics temporarily exempt
- Global Response: Xi Jinping says “no one wins” in trade wars during Vietnam trip
Trump Weighs Pause Auto Tariffs to Ease Impact
Deep Look
WASHINGTON — President Donald Trump signaled Monday that he may pause his auto tariffs to give automakers time to realign their global supply chains, in what could be the latest shift in a trade agenda that has roiled markets and sparked fears of a global recession.
“They need a little bit of time because they’re going to make them here,” Trump said, referring to car companies with overseas operations. “So I’m talking about things like that.”
His remarks, made during a meeting in the Oval Office, suggest the president is weighing a temporary exemption for the auto industry from the 25% import taxes he imposed on March 27, which he had then described as “permanent.”
Reversals and Trade Whiplash
Trump’s suggestion marks yet another pivot in a month full of economic volatility. Last week, the White House announced that most U.S. tariffs would be reduced to 10% for 90 days, following a bond market sell-off that spooked investors and led to sharply rising interest rates.
At the same time, Trump raised tariffs on Chinese goods to 145%, only to backtrack days later by temporarily exempting electronics, which were then reassigned to a 20% tariff category.
“I don’t change my mind, but I’m flexible,” Trump said Monday, echoing a theme his administration has used to describe rapid changes in policy.
Auto Industry in Flux
Trump’s auto tariffs were aimed at pushing manufacturers to bring more production into the U.S. But many carmakers still depend on complex global supply chains, including assembly in Mexico, Canada, and China.
Pausing the auto tariffs would give firms time to adjust operations without facing immediate cost spikes that could drive up consumer prices on vehicles and parts.
Markets Still Shaken
Despite signs of optimism, the stock market remains unsettled. The S&P 500 rose modestly Monday afternoon, but it is still down nearly 9% in 2025. Meanwhile, the 10-year Treasury yield held at 4.4%, indicating investor unease.
“The whiplash has been so great, I may need a neck brace,” said Carl Tannenbaum, chief economist at Northern Trust, in a sharply worded memo. “Damage to consumer, business, and market confidence may already be irreversible.”
Apple, China, and Global Trade Realignment
Trump also revealed that he recently spoke with Apple CEO Tim Cook and claimed to have “helped” the tech executive. Apple assembles many of its signature products, like the iPhone, in China — a country central to Trump’s trade crackdown.
“We helped him out,” Trump said, without specifying details.
The administration argues that its tariffs have successfully isolated China as the U.S. negotiates with other trade partners. However, Beijing has ramped up regional diplomacy, with Chinese President Xi Jinping visiting Vietnam on Monday to strengthen ties.
“There are no winners in trade wars,” Xi said during a meeting with Vietnamese Communist Party General Secretary To Lam — a clear rebuke to U.S. policy.
Asked about the meeting, Trump dismissed it as economic scheming, saying, “They’re trying to figure out how do we screw the United States of America.”
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