President Donald Trump has agreed to postpone tariffs on certain North American-built vehicles for one month following discussions with the CEOs of General Motors and Ford, as well as the chair of Stellantis, the White House announced on Wednesday. The automakers had pressed for a waiver on the 25% tariffs imposed on Mexico and Canada for vehicles meeting the rules of origin under the 2020 US-Mexico-Canada Agreement. White House press secretary Karoline Leavitt confirmed the temporary exemption, stating, “We are going to give a one-month exemption on any autos coming through USMCA… so they are not at a disadvantage.” The decision is expected to benefit US automakers and foreign manufacturers compliant with the agreement, though reciprocal tariffs are still set to take effect on April 2. Automakers have reportedly pledged to increase investments in the US but are seeking clarity on tariff and environmental policies to avoid disruptions.DataGrowth in the US services sector unexpectedly accelerated in February, with the Institute for Supply Management’s nonmanufacturing PMI rising to 53.5 from 52.8 in January, defying forecasts of a dip to 52.6. The increase, coupled with rising input prices and a recent surge in raw material costs at factories, suggests inflation could heat up in the coming months. These price pressures may be exacerbated by President Trump’s new tariffs on imports. The services sector, which accounts for over two-thirds of the economy, remains a key driver of growth, but the combination of inflationary risks and escalating trade tensions poses significant challenges for policymakers and businesses alike.
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