US – Tariff Monitor Trump hits the gas on auto tariffs

President Trump ordered a 25% tariff on autos and auto parts, starting on April 3. It appears that Canada and Mexico will be exempt until the US government can find a way to identify non-US content in autos and auto parts coming from its neighboring countries.

What you will learn:

• It’s noteworthy that noncompliant United State-Mexico-Canada trade goods are being tariffed at 25% this month.
• Japan, South Korea, and the European Union will be impacted immediately by the auto tariffs. We will wait to see if there are retaliatory measure taken.
• The auto tariffs add upside risk to our inflation forecast for this year, but the scale of increase in final consumer prices will be much smaller than imposed tariff rates.

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