Updated Story: Trump Grants Temporary Auto Tariff Relief

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Updated Story: Trump Grants Temporary Auto Tariff Relief \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ President Donald Trump announced a one-month exemption on 25% auto tariffs for U.S. automakers, following concerns that his trade war with Mexico and Canada could cripple domestic manufacturing. The decision comes amid fierce backlash from allies and threats of retaliatory tariffs from Canada, Mexico, and China. Meanwhile, China has imposed new tariffs on U.S. goods, and global tensions continue to rise over Trump’s aggressive trade policies.

Trump’s Tariff Pause & Trade War Quick Looks

Trump grants a one-month exemption on his new 25% auto tariffs, following pressure from U.S. automakers Ford, GM, and Stellantis.
The White House insists automakers should shift production to the U.S., with no guarantees of a further extension.
Stock markets responded positively, with major automakers’ shares rising by up to 6% after the announcement.
Canadian PM Justin Trudeau refuses to lift retaliatory tariffs, declaring that the U.S. has “abandoned a long-standing friendship”.
Mexico plans countermeasures, expected to be announced on Sunday.
China strikes back with new tariffs on U.S. farm exports and expanded export restrictions on American companies.
Trump administration claims tariffs are about stopping drug smuggling, though only 43 pounds of fentanyl were seized at the northern border last year.
Trump doubled tariffs on Chinese imports to 20%, further escalating tensions.
U.S. Defense Secretary Pete Hegseth warns that America must be “prepared for war” amid growing trade hostilities.
Trump downplays economic fallout, calling it a “little disturbance” while predicting long-term growth.
The Associated Press is suing the White House, alleging press suppression over editorial decisions.

Deep Look

Trump Grants Temporary Tariff Exemption After Auto Industry Pushback

Just one day after imposing new tariffs, President Donald Trump temporarily lifted them—at least for one key industry.

A 30-day exemption was granted to U.S. automakers importing vehicles and parts from Canada and Mexico.
The decision followed urgent meetings with Ford, General Motors, and Stellantis, where executives warned of devastating production shutdowns.
White House Press Secretary Karoline Leavitt confirmed the exemption but insisted it is only temporary:“The president told them to start moving production to the U.S., where they will pay no tariff.”

A Brief Reprieve or Just Delaying the Inevitable?

The tariff pause expires on April 2, when Trump plans to impose sweeping “reciprocal” tariffs to match foreign tax rates.
Markets reacted positively, with shares of major automakers rising up to 6%.
Other industries may seek similar exemptions, with Leavitt confirming that Trump is “open” to hearing requests.

Despite this short-term relief, the long-term outlook remains uncertain, as tensions continue with Canada, Mexico, and beyond.

Canada & Mexico Refuse to Back Down

Canada Stands Firm Against Trump’s Trade Moves

Canadian Prime Minister Justin Trudeau responded forcefully, refusing to lift his country’s retaliatory tariffs while Trump’s U.S. tariffs remain in place.

A senior Canadian official told the Associated Press that Trudeau won’t negotiate until Trump backs off.
Trudeau’s statement:“Today, the United States launched a trade war against Canada, their closest partner and ally. Meanwhile, they’re cozying up to Vladimir Putin. Make that make sense.”
Ontario Premier Doug Ford warned that auto industry shutdowns could begin within 10 days, resulting in mass layoffs.

Mexico Prepares Its Own Countermeasures

The Mexican government has signaled that it will announce its own retaliatory tariffs on Sunday.
Officials have called Trump’s moves “reckless”, warning that U.S.-Mexico relations are deteriorating rapidly.

China Hits Back: The Trade War Expands

Trump’s tariff aggression isn’t just affecting North America—China has joined the fight with its own economic retaliation.

New Chinese tariffs of up to 15% were imposed on a broad range of U.S. farm exports.
Export controls on U.S. companies were expanded, targeting over two dozen firms.
China’s embassy in Washington posted a warning on X, stating:“If war is what the U.S. wants, be it a tariff war, a trade war, or any other type of war, we’re ready to fight till the end.”

Trump’s Economic Gamble: Will Tariffs Really Work?

Tariffs as an Economic Weapon

Trump has long argued that tariffs will enrich the U.S., create factory jobs, and boost long-term economic growth.

In his Tuesday night congressional address, he downplayed economic fears, calling the tariff impact a “little disturbance.”
He insisted that farmers will benefit, despite experts warning that retaliatory tariffs could devastate U.S. agriculture.

However, economic analysts warn that:

Tariffs are a tax on importers, meaning costs will likely be passed on to U.S. consumers.
Inflation could rise further, worsening the cost-of-living crisis.
Stock markets remain volatile, as investors fear slower growth and global instability.

U.S. Defense Secretary Signals Military Readiness

The economic war with China has taken on a new dimension, with U.S. Defense Secretary Pete Hegseth making a striking statement on Fox News:

“Those who long for peace must prepare for war.”

He warned that U.S. strength is critical to deterring future conflicts.
His remarks raised eyebrows, as some questioned whether trade disputes could escalate beyond economics.

The Associated Press Sues the White House

Adding to the chaos surrounding Trump’s trade war, The Associated Press filed a lawsuit against the White House on First and Fifth Amendment grounds.

The AP claims the administration is punishing the press for critical coverage.
The dispute stems from a White House executive order requiring news outlets to refer to the “Gulf of Mexico” as the “Gulf of America.”
The White House has not responded to the lawsuit.

Conclusion: A Trade War With No Clear End in Sight

Trump’s tariff policies have set off a global economic standoff, with Canada, Mexico, and China pushing back aggressively.

The one-month auto tariff exemption offers temporary relief—but the wider trade war is still accelerating.
Canada and Mexico refuse to back down, while China has escalated the dispute with new tariffs and restrictions.
Trump predicts long-term economic benefits, but critics warn of inflation, job losses, and global instability.

As Trump’s “reciprocal” tariffs loom in April, the world waits to see:

Will this trade war stabilize, or is the worst yet to come?