U.S. President Donald Trump told CEOs of the automotive industry during a phone call earlier this month requesting a tariff exemption that "everyone must fasten their seatbelts," the New York Times (NYT) reported on the 17th (local time).
On the 4th, President Trump held a phone consultation with representatives of the U.S. automakers known as the 'Big Three'?General Motors (GM), Ford, and Stellantis. This was to hear the concerns of the automotive industry worried about the impact of the 25% tariffs on Canada and Mexico that Trump had decided to implement.
After the call, President Trump announced a one-month tariff exemption on cars entering the U.S. under the United States-Mexico-Canada Agreement (USMCA), showing a willingness to accommodate the industry's demands for the time being. However, his mention of "seatbelts" was interpreted as a message to prepare for tariffs eventually being imposed.
The NYT reported that after President Trump mentioned the seatbelt, silence followed, and "the heads of the Big Three automakers seemed to realize that fighting any longer (to prevent the tariffs) was pointless."
The NYT pointed out, "For President Trump, tariffs are not just a negotiation tool," adding, "He believes tariffs will make America wealthy again." It further stated, "For President Trump, tariffs are a unilateral authority he can decide to implement or withdraw, and they force the powerful to come to him begging for mercy."
The NYT introduced that White House aides tell foreign officials and CEOs that President Trump will be unrestrained on tariff issues, noting that while there is still a possibility he might back down on some tariffs, a complete reversal of tariff policy is unlikely.
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