In the weeks following the Trump administration’s tariff announcements, which sent global economies into turmoil, several amendments have been made to the policy, giving certain industries a much-needed break. Among the beneficiaries are automotive parts suppliers from Canada and Mexico, who can now qualify for exemptions. Had this adjustment not been made, it could have further destabilized the industry.
Under the updated tariff system, parts that meet the requirements of the United States-Mexico-Canada Agreement (USMCA) are spared from the 25% duty slapped on most other components. This is a shift from Trump’s earlier suggestion that non-US parts would eventually face the same 25% tariff. Now, it’s confirmed that the current 0% duties on compliant parts will stay put – for now, at least.
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