President Donald Trump on Monday suggested he might temporarily exempt some He previously imposed tariffs on the industry, giving automakers time to adjust their supply chains.
Trump told reporters gathered in the Oval Office.
The Republican president said it would take time for automakers to relocate production from Canada, Mexico and elsewhere, “They need a little time because they're going to do them here, but they need a little time. So I'm talking about something like this.”
The statement hints that a round of tariffs has been terrified by Trump's shock to import taxes and has attracted deep attention from Wall Street economists about a possible recession.
U.S. President Donald Trump announced that some auto parts from Canada could be exempted from additional tariff exemptions after ambiguous imposition of tariffs on electronic imports from China. Trump said on Monday that further tariffs are expected to target drugs and semiconductors.
When Trump announced an automatic tariff of 25% on March 27, he described it as “permanent.” His difficult route to trade has become increasingly blurred as he tries to limit the possible economic and political fightback in his policies.
Last week, after the bond market sell-off pushed up interest rates on U.S. debt, Trump announced that within 90 days his extensive tariffs on dozens of countries would be set at a benchmark of 10% to give negotiation time.
Meanwhile, Trump raised China's import tax to 145%, temporarily exempting these tariffs only by charging these goods at a 20% tax rate.
“I won't change my mind, but I'm flexible,” Trump said on Monday.
Trump's flexibility also exacerbates uncertainty and confusion about his intentions and ultimate goals. The S&P 500 rose slightly in trading Monday afternoon, but is still down nearly 9% this year. Interest rates on 10-year U.S. bonds also rose by about 4.4%.
Carl Tannenbaum, chief economist at Northern Trust Global Finance, said the whip was so big that he might have to be “fitting for neck support.”
Tannenbaum warned in his analysis: “The damage to consumer, business and market confidence may have been irreversible.”
The U.S. president also said he spoke with Apple CEO Tim Cook and recently “helped” him. Many Apple products, including its popular iPhone, are assembled in China.
Apple did not respond to a request for comment on Monday's latest volatility in the Trump administration's tariff swing.
Even if the exemption granted to electronics last week was short, the temporary probation gave Apple some breathing room to find ways to minimize the impact of the trade war on U.S. iPhone sales
In trading Monday afternoon, the outlook increased Apple's share price by about 3%. Still, the stock abandoned its early 7% growth as investors deal with the possibility that more tariffs on iPhones on Chinese-made products in the coming weeks could still be shocking.
