Trump believes his automatic tariffs will be suspended as the world economy continues to whip

Donald Trump suggested on Monday that he could temporarily waive the tariffs he had previously imposed on the industry to give automakers time to adjust their supply chains.

Trump told reporters gathered in the Oval Office. The Republican president said it would take time for automakers to relocate production from Canada, Mexico and elsewhere, “They need a little time because they’re going to do them here, but they need a little time. So I’m talking about something like this.”

Matt Blunt, chairman of the American Automotive Policy Committee, which represents Ford, General Motors and Stratlandis, said the group shared Trump’s goal of increasing domestic production.
“The widespread tariffs on parts could undermine our shared goal of building a thriving and growing U.S. automotive industry, and many of these supply chain transitions will take time,” Blunt said.

Trump’s statement hints at the shock to the import tax that has scared financial markets and has attracted deep attention from Wall Street economists about a possible recession.

When Trump announced an automatic tariff of 25% on March 27, he described it as “permanent.” His difficult route to trade has become increasingly blurred as he tries to limit the possible economic and political fightback in his policies. Last week, after the bond market sell-off raised interest rates on U.S. debt, Trump announced that within 90 days his extensive tariffs on dozens of countries would be set at a benchmark of 10% to give negotiation time. Meanwhile, Trump raised China’s import tax to 145%, but temporarily exempted these tariffs by charging these goods at a 20%.

“I won’t change my mind, but I’m flexible,” Trump said on Monday.

Trump’s flexibility also exacerbates uncertainty and confusion about his intentions and ultimate goals. The S&P 500 index rose 0.8% on Monday, but still fell nearly 8% this year. Interest rates on 10-year U.S. bonds rose by about 4.4%.

Carl Tannenbaum, chief economist at Northern Trust Global Finance, said the whip was so big that he might have to be “fitting for neck support.”

Tannenbaum warned in his analysis: “The damage to consumer, business and market confidence may have been irreversible.”

The European Commission on Trade and Economic Security Marosšefčovič released on Monday on X, representing the EU on behalf of the EU in trade negotiations with Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer.

“The EU is still constructive and ready for fair deals – including through our 0-0 discount on industrial goods and reciprocity for work that is not TV barriers,” Schevcevic said.

The U.S. president also said he spoke with Apple CEO Tim Cook and recently “helped” him. Many Apple products, including its popular iPhone, are assembled in China.

Apple did not respond to a request for comment on Monday’s latest volatility in the Trump administration’s tariff swing.

Even if the exemption granted to electronics last week was short, the temporary probation gave Apple some breathing room to find ways to minimize the impact of the trade war on U.S. iPhone sales

The outlook helped boost Apple’s share price by 2% on Monday. Still, the stock abandoned its early 7% growth as investors deal with the possibility that more tariffs on iPhones on Chinese-made products in the coming weeks could still be shocking.

Dan Ives, an analyst at Wedbush Securities, said Apple was clearly in a much better position than it was a week ago, but warned that there is still “mass uncertainty, chaos and chaos” to the speed of the next step. ”

Apple may be examining a possible solution during its current tariff probation period to move more iPhone production from China’s long-term hub to India, and it began to expand its manufacturing sector as Trump launched a trade war during his first term as president.

The Trump administration suggests that its tariffs have quarantined China as the United States holds talks with other countries.

But China is also trying to build closer ties with Trump’s tariffs in Asia. China’s leader Xi Jinping Jiping met with Vietnamese Communist Party Secretary-General Lam in Hanoi on Monday and conveyed a message that no one had won the trade war.

When asked about the meeting, Trump suggested that the two countries conspire to cause economic harm to the United States by “trying to figure out how we mess up the United States of America.”