AutoTechInsight
Rapid Response: Impact analysis of US automotive trade/tariff actions - Issue #7
With U.S. trade policy in flux, new tariffs continue to reshape the automotive landscape. A 25% tariff on Canadian and Mexican imports took effect on March 4, though USMCA-compliant goods have a temporary reprieve until April 2. Mainland Chinese imports now face a 20% tariff, while steel and aluminum tariffs are in place as of March 12. As the Trump administration signals further global trade measures on April 2, this analysis examines the evolving tariff landscape and its impact on North American supply chains.
The U.S. has intensified trade uncertainty with escalating tariffs and shifting policies. As of March 4, a 25% tariff on Canadian and Mexican imports took effect, but a temporary reprieve for USMCA-compliant goods extends through April 2. Meanwhile, tariffs on mainland Chinese imports have risen to 20%, and new 25% steel and aluminum tariffs are now in place as of March 12. Further global tariff adjustments are expected on April 2, potentially affecting USMCA-compliant goods and introducing reciprocal measures for additional countries.
While no new formal actions have been taken since our last report, the Trump administration continues to signal a hard-line stance on trade. This report provides an updated assessment of the evolving tariff landscape, its impact on North American supply chains, and the potential consequences of the upcoming April 2 announcements. S&P Global Mobility’s scenario expectations have been adjusted accordingly in this latest analysis.
