Car manufacturers breathe more easily because Trump freezes prices for 30 days

The break occurs shortly after Canada said it would reach $ 155 billion in American imports with 25% prices

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Mexico and Canada have obtained 30 -day speeches from 25% prices announced by US President Donald Trump, just a few hours before prices took effect. Mexico was the first to take a break after its president agreed to intensify security on the southern border.

Given the number of cars built in Mexico, then imported to the United States, any postponement is welcome both for the automotive industry and consumers who otherwise place the bill.

While writing on Truth Social Monday, Trump revealed that he had a “very friendly conversation” with Mexican president Claudia Sheinbaum shortly before the prices were presented. According to Trump, Sheinbaum “agreed to immediately provide 10,000 Mexican soldiers to the border separating Mexico and the United States.” He added that soldiers “will be specifically designated to stop the fentanyl flow and illegal migrants in our country.”

Read: Trump prices could cost us $ 33 billion in the automotive industry

Although this agreement has temporarily interrupted the prices, the negotiations are still underway. Secretary of State Marco Rubio, Treasury Secretary Scott Bessent and the Commerce Secretary Howard Lutnick continue their discussions with their Mexican counterparts to determine whether a more permanent resolution can be reached.

Although there is no guarantee that Mexico will be able to completely avoid prices, this is an important step in the softening of tensions between the two countries. If the prices should be implemented, it is likely that retailers should transmit price increases to consumers. This could also include the automotive industry. Each year, Mexico sends more than 2.3 million vehicles to the United States, and several other car manufacturers build cars south of the border and sell it in the United States.

Some of the most popular vehicles on American roads are built in Mexico. Car manufacturers with production facilities include GM, Ford, Honda, Toyota, Nissan, BMW and Volkswagen. This means that models like the Honda HR-V, Nissan Sentra, Chevrolet Blazer, Ford Maverick and BMW 3 Series Seeries could all see price increases if the prices end up passing.

Canada’s stay

Shortly after Trump confirmed the delay in the promulgation of prices against Mexico, Canadian Prime Minister Justin Trudeau revealed that he had “a good call” with Trump and agreed to delay the prices. He said the country will strengthen its border with “new helicopters, technologies and staff”, seeking to stop the fentanyl flow.

He also mentioned the plans to name a so-called “fentanyl tsar”, classify cartels as terrorist organizations and establish a joint strike force with the United States to target organized crime, fentanyl distribution and laundering money.

Canada does not seem to have made new commitments to protect its border with the United States. As CNBC notes, all the stages noted by Trudeau were already part of Canada’s border plan, published about six weeks ago.

Plus: Canada strikes with 25% of prices on American cars, electric vehicles and more

Meanwhile, Canada is not sitting inactive. In response to Trump’s pricing threats, the country has deployed a two-step counter-level package for a wide range of American products, including up to 25% on each American manufacturing vehicle. If these measures come into force, they could take a hard blow for car manufacturers and further increase trade tensions between the two countries.

I just had a good call with President Trump. Canada is implementing our $ 1.3 billion border plan – strengthening the border with new helicopters, technologies and staff, improved coordination with our American partners and an increase in resources to stop the fentanyl flow. Almost…

– Justin Trudeau (@justintrudeau) February 3, 2025