US hints at the possible release from the automotive industry

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US Secretary of Trade Howard Lutnit noted that some sectors may “leave” the tariffs imposed in Canada and Mexico, sending shares from the manufacturers above.

LUNT said US President Donald Trump was considering which sectors could alleviate 25 percent tariffsthat came into force on Tuesday.

“What he thinks is about what sections of the market may, perhaps, may think to give them relief,” he said.

Later on this day, there was a message, – Lutnik said on Bloomberg TV on Wednesday, in the comments that helped call a rally on Wall -Rest after the fall of the stock.

Trade Secretary said the administration considered the US agreement in the US-Mexico Cape agreement, including automakers.

While some sectors will still be able to be able to be 25 percent tariff, Lutnik said, others could see some relief. “It can be autos, it can also be others,” he added.

Trump’s tariffs have caused steep revenge from the Ottawa and threw relations between the US, Mexico and Canada in the riot.

They are especially important for manufacturers, which often move components between three countries during the production process.

Lutnik, former executive director of the Cantor Fitzgerald Financial Services Group, has become the main negotiator of Trump in trading confrontation with Canada and Mexico, even as other officials, such as Peter Navarra, an advisor to production policy, which is engaged in production.

As a result of the tensions raised as a result of the trade war, Prime Minister Justin Trudu will not raise the tariffs for Canada if Washington retains no charges, the senior government adviser said The Financial Times.

Lutnik said his understanding was that three American-Ford, General Motors and Chrysler, owned by Stellantis, complied with the origin rules set under USMCA.

“If you have fulfilled the agreement, then you may avoid tariffs,” Lutnit added. “And if you haven’t fulfilled the agreements, you did it at your own risk. You knew you don’t execute.”

The GM shares on Wednesday jumped by almost 4 percent, while Ford increased about 3 percent. The stock in Stellantis rose 5 percent.

The rally returned most of the soil that cars lost the previous day when tariffs were imposed.

Bernstein analysts have nominated GM as the most open American manufacturer. He estimated that next year the company will get a $ 6.7 billion drop compared to $ 2.9 billion for Ford and EUR 3.5 billion.

European brands, many of which export cars from Canada and Mexico for sale in the United States, have also suffered, and Volkswagen’s shares are bounced by 3.5 percent at the beginning of trading on Wednesday after the fall.

Lutnik emphasized the complaints of the Trump administration that Mexico and Canada could not stop trade in the deadly apioid fentanyl and call for countries to strengthen their borders.

“If they can stop the stream of Fentonil, the president is open,” he said. “There will be tariffs, let’s be clear… Maybe he will consider their relief until we get until April 2”

This is the date when Trump has to announce “mutual” tariffs against a wide range of trading partners and US allies.

The US president has ordered his trade advisers to come up with new tariffs based on “country” in retaliation, subsidies, taxes and rules that Washington considered unfair.

White House representatives suggested that Brazil, India, Japan and the EU are at risk faced with additional responsibilities.

Next year, a more complete USMCA negotiation took place, Lutnit said.

On Tuesday, Trudu called Trump tariffs on Canadian goods as “very silent to make” and unleashed a direct 25 percent tariff for $ 30 billion ($ 21 billion) from US imports.

Speaking at Fox News on Wednesday morning, US Treasury Minister Scott Baverty called Trudeau, who resigned this year after almost a decade of power, “lame duck” and “dead man”.

Mexico President Claudia Sheinbaum, which delayed the proclamation of Mexico’s revenge on Sunday, said she was expecting to talk to Trump on Thursday morning.

Additional Ilya Gridneff reporting