America's Defense Future Starts Underground

A N. American metals project just caught the attention of Rio Tinto - a mining giant. With four projects in key regions, this firm is aligned with Washington's push to rebuild the defense-metal supply chain.

As Trump considers auto tariffs pause, parts exemptions could be key for US industry

ALEXA ST. JOHN
April 15, 2025

DETROIT (AP) -- President Donald Trump hinted that he might temporarily relieve the auto industry from "permanent" tariffs he previously imposed on the business. The president didn't specify how long the potential pause would be or what it would entail, but the auto sector is awaiting how rules might change on 25% tariffs based on U.S. parts, if duties remain on assembled vehicles.

Experts have said short pauses aren't likely to give carmakers enough of an opportunity to adjust their vast global supply chains, though parts exemptions would certainly bolster the industry amid Trump's trade war whiplash.

Trump told reporters Monday that automakers "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," referring to relocating production from Canada, Mexico and elsewhere. The news drove global auto stocks up Tuesday.

Matt Blunt, president of the American Automotive Policy Council, which represents domestic auto companies Ford, General Motors and Stellantis, said in a statement: "There is increasing awareness that broad tariffs on parts could undermine our shared goal of building a thriving and growing American auto industry, and that many of these supply chain transitions will take time."

Trump first announced 25% automotive tariffs late March; the tariffs for completed vehicles took effect on April 3, while the parts tariffs were set to start 30 days later.

"The one-month delay is intended to give the U.S. government time to work out rules to exempt the value of automotive parts that contains U.S.-made materials, which will not be subject to the tariffs," according to insights from law firm Foley & Lardner, noting a "carveout" for parts certified under regional trade pact, the U.S.-Mexico-Canada Agreement. The Department of Commerce is expected to determine "a system to calculate non-U.S. content" by May 3.

At the same time, automakers are navigating steel and aluminum imports levies of at least 25%; 25% duties on all goods from Canada and Mexico; 10% global tariffs and reciprocal tariffs around the world -- paused for 90 days, and both of which automotive is exempt from; and tariffs on China at 145%.

The United Auto Workers labor union, and Autos Drive America, which represents foreign automakers, did not respond to requests for comment.

The on-again, off-again tariffs have already wrought havoc for any number of global sectors but especially the auto industry, which relies on a complex network of parts from around the world.

The American and European car industries are "severely affected by tariffs. On top of the 25% tariff imposed on vehicles, we are impacted by layer upon layer of additional compounding tariffs including those on aluminum, steel, and parts," Stellantis Chairman John Elkann said in the company's annual general meeting Tuesday, noting at the same time, the Chinese auto market's potential for growth this year.

"But it's not too late if the U.S. and Europe take the necessary urgent actions to promote an orderly transition," Elkann added. "We are encouraged by what President Trump indicated yesterday on tariffs for the car industry."

Though Trump says his tariffs are intended to bolster U.S. auto manufacturing, automakers aren't able to reconfigure their sourcing in short periods of time, experts say.

Because of the nature of the business and the length of time it takes to design product and get manufacturing up and running, it could take years to reevaluate sources of supply and establish new assembly operations.

"Flipping upside down a global supply chain that has been in place for decades cannot happen overnight for the auto industry," Wedbush Securities analyst Dan Ives said in a research note, "and we strongly believe the clear right move would be to focus on finished cars made in the U.S." versus auto parts.

The tariffs as they currently stand are sure to cost automakers billions of dollars, impact new and used vehicle supply and raise prices for car buyers at dealerships by thousands of dollars.

Already, some auto manufacturers have paused operations in Canada and Mexico and temporarily laid off workers in the U.S.

Some have also attempted to get ahead of the impact of tariffs through appeals to customers. In rare moves, Ford, Hyundai, Genesis and Jeep-maker Stellantis began offering employee pricing programs for a limited time to reach buyers before what will most likely be steep price hikes.

Car buyers might be better positioned for an extra few weeks, depending on the latest policy change.

___

Alexa St. John is an Associated Press climate reporter. Follow her on X: @alexa_stjohn. Reach her at ast.john@ap.org.

Continue Reading...

Popular

VinFast's Losses Mount As It Burns Cash To Cement Global EV Presence

Vietnam's VinFast Auto Ltd. (NASDAQ: VFS) shares fell after reporting Q3 fiscal 2025 results. Loss per share of 41 cents missed estimates.

"Tech Prophet" Who Predicted the iPhone Now Predicts... - Ad

George Gilder - who predicted the iPhone 17 years early and gave Reagan the first microchip - is making his boldest call yet. He says an American nanotech "super-convergence" could mint more millionaires than any event in recent memory. He's found 3 stocks set to benefit the most.

Elanco Animal Health Stock Is Undervalued: Analyst

KeyBanc initiates Elanco with an Overweight rating, citing strong Innovation Product growth, margin gains, and a path to lower leverage.

Cathie Wood Bets Big On These Stocks As Bitcoin, Ethereum Crash —Dumps Instagram Rival

On Tuesday, Cathie Wood-led Ark Invest made significant trades, notably increasing its holdings in Bullish (NYSE:BLSH), Coinbase Glo

Metals... Not Missles... Is the New Arms Race - Ad

China and Russia control 70% of the world's critical minerals, giving them leverage over the West. One N. American discovery could help shift that balance by developing the metals essential for defense systems.

These are the 37 donors helping pay for Trump's $300 million White House ballroom

WASHINGTON (AP) — President Donald Trump says his $300 million White House ballroom will be paid for “100% by me and some friends of mine.”

Trump Knew It All Along... Free, Endless Power is REAL - Ad

At this moment, an unprecedented alliance of billionaire investors... giant corporations... and the U.S. government... Is pushing this new fuel into the mainstream at breakneck speed. We're talking about a revolution that will change the world FOREVER.

France threatens to block Shein over sale of childlike sex dolls ahead of Paris store opening

PARIS (AP) — French authorities have warned they may block access to after it emerged that the online fast fashion giant had been selling sex dolls with a childlike appearance.

Bonanza Copper-Gold Hit Just Announced - Ad

A new intercept delivered 17.91% CuEq over 6.3 metres, including 13.48% copper and 5.15 g/t gold. These results, from a developed Quebec district, could mark a turning point.

Billionaire Ray Dalio Says Ride The Bubble Until It Bursts

Billionaire investor Ray Dalio says the stock market is in a bubble - but don't sell yet.

Coeur Mining's $7 Billion Deal For New Gold Creates $20 Billion Powerhouse

Coeur Mining Inc. (CDE) announced acquisition of New Gold Inc. (NGD) in all-stock deal valued at $7 billion.

Big Oil Threatened by New Fuel Unlocking FREE, Endless Power - Ad

The Trump administration is about to stun the world with a miraculous new innovation that could singlehandedly bring energy independence not just to the U.S. but to the entire world. Taking a position today, even a small one, could make you incredibly rich... and keep that you way for the next 50 years.

Peter Thiel Once Explained Why Bitcoin Won't Go Up 'Dramatically' And How It's Set For A 'Volatile, Bumpy Ride' Thanks To BlackRock

Bitcoin's ongoing struggles have brought renewed attention to comments made last year by Palantir Technologies co-founder Peter Thiel, who predicted that the leading cryptocurrency was unlikely to see a dramatic surge

Elon's New Device Could Launch Biggest IPO of the Decade - Ad

Elon Musk's new device is being called a "game-changer"-and even the White House is using this tech. Jeff Brown says it could launch Musk's next trillion-dollar company and make early investors rich. You can claim a stake now for as little as $500.

Typhoon Kalmaegi leaves 26 dead in Philippines, people trapped on roofs and cars submerged

MANILA, Philippines (AP) — Typhoon Kalmaegi has left at least 26 people dead in the Philippines, mostly in flooding set off by the storm, which barreled across the central part of the country on Tuesday, disaster response officials said. Floodwaters trapped scores of people on their roofs and submerged cars.

Trump Signs Law to Launch Dollar 2.0 - Ad

Trump just signed law S.1582, unleashing the biggest money shift in 100+ years. For the first time since 1913, private firms - not the Fed - can mint a "Dollar 2.0." Treasury says it could drain $6.6T from banks and pay 10X current savings rates. Early investors in minting firms could see 40X returns by 2032.

Why Is Phio Pharmaceuticals Stock Soaring Today?

Shares of Phio Pharmaceuticals Corp. (NASDAQ: PHIO) are rising Monday after the company provided an update on an ongoing medical trial.

Can You Still Trust This Bull Market? - Ad

Is this bubble set to pop? Headlines say yes, but one market vet with a 15-year track record says not yet. A historic pattern is taking shape that could send $7.4 trillion pouring into select stocks, triggering a Melt Up that could run for years to come. You don't want to miss it.

Trump's China Tariff U-Turn, Ray Dalio's 'Melt-Up' Warning And More: This Week In Economy

Weekend roundup: Trump's China tariff shift, $17T investment claim, Dalio warns of market melt-up, shutdown hits GDP, Schiff weighs in on Supreme Court review.

How it's Possible to Rake In Huge Gains From Gold's Surge - Ad

Gold blasted past $4,300 recently. It's up almost 50% in the past year. But why settle for 50% like most coin buyers... when past gold cycles have thrown off gains of 2,300%, 7,746%, even 9,850%? Weiss Ratings' gold expert Sean Broderick reveals what he believes is a more profitable way to play this surge.

OpenAI and Amazon sign $38B deal for AI computing power

SEATTLE (AP) — OpenAI and Amazon have signed a $38 billion deal that enables the ChatGPT maker to run its artificial intelligence systems on Amazon's cloud computing services.

Court Blocks Trump's SNAP Reductions, But Stricter Eligibility Rules Begin

New work requirements for SNAP begin Saturday, but benefits may not be issued through November due to the government shutdown.

America's Defense Future Starts Underground - Ad

A N. American metals project just caught the attention of Rio Tinto - a mining giant. With four projects in key regions, this firm is aligned with Washington's push to rebuild the defense-metal supply chain.

Flying-Taxi Maker Archer Loses Altitude As Investors Question Costly Airport Move

Archer Aviation Inc. (NYSE: ACHR) shares down on Q3 results and plans to acquire Hawthorne Airport for $126 million.

"Tech Prophet" Who Predicted the iPhone Now Predicts... - Ad

George Gilder - who predicted the iPhone 17 years early and gave Reagan the first microchip - is making his boldest call yet. He says an American nanotech "super-convergence" could mint more millionaires than any event in recent memory. He's found 3 stocks set to benefit the most.

Metals... Not Missles... Is the New Arms Race - Ad

China and Russia control 70% of the world's critical minerals, giving them leverage over the West. One N. American discovery could help shift that balance by developing the metals essential for defense systems.

Trump Knew It All Along... Free, Endless Power is REAL - Ad

At this moment, an unprecedented alliance of billionaire investors... giant corporations... and the U.S. government... Is pushing this new fuel into the mainstream at breakneck speed. We're talking about a revolution that will change the world FOREVER.

'No hire' job market leaves unemployed in limbo as threats to economy multiply

WASHINGTON (AP) — When Carly Kaprive left a job in Kansas City and moved to Chicago a year ago, she figured it would take three to six months to find a new position. After all, the 32-year old project manager had never been unemployed for longer than three months.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright systemtrading.ca
Privacy Policy | Terms of Service