Last February, Trump firmly pledged to impose a 25% tax on auto imports from Canada and Mexico by April 2.
However, a new report claims that Trump may back out – again.
Industry giants have warned that the move could drive up car prices and cripple supply chains, with an estimated increase of up to RM56,000 for luxury SUVs and trucks.
So what’s the next ‘backup’ plan?
Instead of imposing blanket tariffs, Trump is now considering “reciprocal tariffs” on specific countries to ensure trade balance.
However, with an auto industry already reeling, the mere threat of tariffs may be enough to cause damage.
Is this purely political strategy, or will Trump back down at the last minute?
