Auto industry tariffs are doing what now? 24 hours of White House confusion

Over the past 24 hours, the auto industry has experienced significant policy changes from the White House, causing confusion among investors and stakeholders.
The Trump administration was reportedly considering slashing tariffs on China, potentially lowering them to 50% from 145%, but Treasury Secretary Scott Bessent denied this claim.
However, just hours later, the Financial Times reported that Trump was indeed planning to eliminate tariffs on steel, aluminum, and car parts imported from China.
The White House also announced plans to grant exemptions to China for auto part tariffs, which could potentially ease tensions between the two countries.
Meanwhile, Canada’s car tariffs might increase, adding another layer of complexity to the already volatile situation in the auto industry.

Over the past 24 hours, the auto industry has experienced some of the most extreme whiplash in the saga of the Trump administration’s tariffs, ending on Wednesday night with two contradicting policy proposals coming out of the White House: China may be granted exemptions on auto part tariffs, but Canada’s car tariffs might increase.

Last night, the Wall Street Journal reported that Trump was considering slashing his 145 percent tariffs on China, lowering some of them potentially to 50 percent – a report that may have assuaged rattled investors. It seemed especially credible given Trump himself hinted at decreases during a press event earlier that day, saying: “145% is too high. It will come down substantially.” Yet Treasury Secretary Scott Bessent denied the WSJ report the next morning, saying the U.S. would not lower tariffs unilaterally. “This is the equivalent of an embargo, and a break between the two countries in trade does not suit anyone’s interests,” he told reporters.

Within hours, however, the Financial Times reported that Trump was indeed planning to eliminate his recently-imposed tariffs on steel, aluminum, and car parts imported from China, and the White House conf …

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Q. What happened to the auto industry tariffs over the past 24 hours?

A. The auto industry experienced extreme whiplash as two contradicting policy proposals came out of the White House, with China potentially being granted exemptions and Canada’s car tariffs possibly increasing.

Q. Did Trump consider lowering his tariffs on China?

A. Yes, according to reports from the Wall Street Journal, Trump was considering slashing his 145% tariffs on China, potentially lowering them to 50%.

Q. What did Treasury Secretary Scott Bessent say about lowering tariffs unilaterally?

A. Bessent denied the WSJ report, stating that unilateral tariff reductions would be equivalent to an embargo and not in anyone’s interests.

Q. Did Trump indeed plan to eliminate his recently-imposed tariffs on steel, aluminum, and car parts imported from China?

A. Yes, according to reports from the Financial Times, Trump was planning to eliminate these tariffs.

Q. Why did Trump hint at decreasing his tariffs during a press event earlier that day?

A. Trump said “145% is too high” and stated it would come down substantially, suggesting he was open to reducing the tariffs.

Q. What was the reaction of investors after the Wall Street Journal reported on potential tariff reductions?

A. The report may have assuaged rattled investors, indicating a positive impact on market sentiment.

Q. Why did Treasury Secretary Bessent deny the WSJ report about lowering tariffs unilaterally?

A. Bessent stated that unilateral tariff reductions would be equivalent to an embargo and not in anyone’s interests.

Q. What was the White House’s stance on trade with China after the reports of potential tariff reductions?

A. The White House seemed to be open to granting exemptions to China, potentially reducing tariffs.

Q. How did the Financial Times report on Trump’s plans for eliminating tariffs on steel, aluminum, and car parts imported from China?

A. The Financial Times reported that Trump was indeed planning to eliminate these tariffs.