Trump Is Considering Pausing Auto Tariffs

President Trump suggested Monday that he might temporarily exempt the auto industry from tariffs he previously imposed on the sector to give carmakers time to adjust their supply chains. "I'm looking at something to help some of the car companies with it," Trump told reporters gathered in the Oval Office. He said automakers needed time to relocate production from Canada, Mexico, and other places. "And they need a little bit of time because they're going to make them here, but they need a little bit of time. So I'm talking about things like that."

• The statement hinted at yet another round of reversals on tariffs as Trump's onslaught of import taxes has panicked financial markets and raised deep concerns from Wall Street economists about a possible recession, the AP reports.

• When Trump announced the 25% auto tariffs on March 27, he described them as "permanent." His hard lines on trade, however, have become increasingly blurred as he has sought to limit the possible economic and political blowback from his policies. "I don't change my mind, but I'm flexible," he said Monday.
• Detroit's Big Three automakers have been lobbying the White House for weeks to have some low-cost car parts excluded from tariffs, Bloomberg reports. Ford, GM, and Stellantis have told the administration they are willing to pay tariffs on imports of finished vehicles and large parts like engines, but import taxes on other parts would drive up costs by billions of dollars and lead to layoffs.
• Stocks in the Big Three jumped after Trump's remarks, the AP reports. General Motors rose 3.6%, Ford rose 4.1%, and Stellantis rose 5.1%. The companies have complex supply chains and production processes that cross borders several times within North America.
• The tariffs on finished vehicles took effect April 3, with tariffs on parts expected May 3. Officials in Canada say that since some parts go back and forth across the border multiple times, the Trump administration hasn't figured out a formula for the parts tariffs yet, Global News reports.

(More tariffs stories.)