The stock market increased on Wednesday afternoon after the Trump administration gave car manufacturers an exemption from one month of rates imposed one day before.
The industrial average Dow Jones rose about 550 points, or 1.3%; While the S& P 500 jumped 1.25%. The heavy technological nasdaq increased 1.5% on Wednesday.
The press secretary, Karoline Leavitt, said President Donald Trump had ordered the delay of automobile tariffs after a request for the 3 great American car manufacturers: Ford, General Motors and Stellantis, the parent company of Jeep and Chrysler.
“The president is giving them an exemption for a month, so they are not at an economic disadvantage,” Leavitt said during a press conference at the White House.
Tariffs are expected to present a challenge for American car manufacturers, many of which depend on a closely intertwined supply chain with Mexico and Canada.
While facilitating some rates, Trump criticized Canada on Wednesday, so he described how not to take the necessary measures for the United States to withdraw all rates imposed one day before.
Trump said he made a call with Canadian Prime Minister Justin Trudeau on Wednesday during which the two leaders argued a path to the withdrawal of the tariffs. Such a result would require sufficient action by Canada to address drug trafficking, Trump told Trudeau transmission.
A week ago, Trump claimed that illicit drugs such as fentanyl had continued to enter the United States through Mexico and Canada despite the agreements reached last month to address the problem.
In a publication about Social truth On Wednesday, Trump said: “Nothing has convinced me” that the Fentanyl Flow in the United States had stopped.
“[Trudeau] He said he has improved, but I said: “That is not good enough.” The call ended in a “something” friendly way! “Trump said.
Since September, almost all fentanyl seized by the United States arrived by the southern border with Mexico, according to customs and border patrol of the United States, or CBP, a federal agency. CBP discovered that less than 1% of the fentanil was seized on the northern border with Canada.
President Donald Trump speaks in the Roosevelt room of the White House in Washington, DC, on March 3, 2025.
Roberto Schmidt/AFP through Getty Images
Canadian Prime Minister Justin Trudeau, abruptly criticized tariffs on Tuesday, calling them a “silly” policy that does not “make sense.”
The reason for tariffs is based on a false accusation about Canada as an important source of drugs entering the United States, Trudeau added.
The persistent tensions between the United States and Canada arose after China issued a warning on Tuesday night that is ready for any “type of war” with the United States after the rates imposed by the Trump administration.
The United States slapped 25% of the tariffs of the goods of Mexico and Canada, as well as 10% of tariffs in China imports. The new round of duties on Chinese products doubled an initial set of rates placed in China last month.
A spokesman for the Chinese Ministry of Foreign Affairs said that tariffs would not lead to a resolution of US concerns about the fentanyl that originates in China.
“If the United States really wants to solve the fentanyl problem, then the right thing is to consult with China on the basis of equality, mutual respect and mutual benefit to address others’ concerns,” the Chinese spokesman, Lin Jian saying At a press conference on Tuesday night.
“If the United States has another agenda in mind and if the war is what the United States wants, be it a tariff war, a commercial war or any other type of war, we are ready to fight until the end,” added the spokesman.
The comments occurred shortly after the Trump administration imposed 25% tariffs in the goods of Mexico and Canada, as well as 10% of tariffs on China imports. The new round of duties on Chinese products doubled an initial set of rates placed in China last month.
A few minutes after the new US tariffs.
“The retaliation rates that China is imposing are very specific and directly aimed at American farmers, who are mainly found in red states and mostly voted for Trump,” News Neil Thomas, a member of Chinese policy at the Chinese analysis center of the Institute of Policy of the Asia Society, to ABC, told ABC.
“Then, China is trying to create pain where it is important for Trump, and hopes to take Trump to the negotiating table and offer relief to this group of Trump supporters,” Thomas added.
Recent tasks will be placed at the top of similar rates imposed by China during the commercial war of the first Trump administration in 2018. Some of those rates are already 25%, although Beijing issued some exemptions as a result of the 2020 trade agreement “Phase one”.
The new Chinese tariffs will enter into force for the goods sent on March 10.
In a series of publications in social networks last month, Trump said he would place tariffs in Canada, Mexico and China to organize the manufacture and transport of illicit drugs that end in the United States.
During a speech to a joint session of Congress on Tuesday night, Trump also strongly criticized tariffs imposed by the Chinese government on US assets.
“President Trump continues to demonstrate his commitment to ensure that US trade policy serves the national interest,” said the White House in A statement Tuesday.
The Secretary of Commerce, Howard Lutnick, said Tuesday afternoon that Trump can soon offer Canada and Mexico a road to the relief of tariffs placed in some goods covered by the Free Trade Agreement of North America.
Lutnick did not mention a potential commitment to China.
ABC News Selina Wang, Kevin Shalvey, Karson Yiu and Ellie Kaufman contributed to this report.
