DETROIT (WWJ) — President Donald Trump on Monday paused plans to impose tariffs on Canada and Mexico, pushing the date back one month after both countries agreed to a few short term solutions.
Both Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau said on social media Monday they had conversations with the Trump administration and reached agreements. Both agreements include, in part, sending troops to the countries' borders in an attempt to cut down on illegal drug trafficking, as well as the flow of illegal immigrants at the US-Mexico border.
While the 25% tariffs on a wide range of goods — especially when it comes to the auto industry — from both countries have been put on hold for now, WWJ Newsradio 950's Charlie Langton reports there's still "a lot of buzz" about the tariffs near the Canadian border.
He paid a visit to A&L Ham Palace on Fort Street in Southwest Detroit, a diner near the Ambassador Bridge that's popular with Canadian truckers.
Maria Hernandez of Southwest Detroit, a regular at the diner, said many truckers have been "really quiet" about the tariffs, but she says many have "a really worrisome look on their face."
"That's how they pretty much are. No one says anything," she said. "And you know, we're the same. What can we do? If they do the tariffs, basically, we're gonna be the ones that are gonna pay more money."
Robert, the diner's co-owner, says some truckers are confused, but thinks it will be worked out in the end.
"Some of 'em talk good, some of 'em talk bad. Obviously things are gonna get tight until they figure out exactly what's going on and the heads of state get together and make things right, but things need to be done," he said.
"Sometimes you need to break some eggs to make an omelette," he said.
As for the auto industry, the impending tariffs could have a massive impact on Metro Detroit, according to WWJ AutoBeat Reporter Jeff Gilbert, as General Motors builds pickup trucks in both Canada and Mexico, Ford makes its Maverick in Mexico and Windsor is home to Chrysler's minivans and Dodge's Chargers.
All would be subject to tariffs, as would be Canadian and Mexican parts that go into vehicles made in the US, according to Gilbert.
He reports carmakers have been bracing for the possibility of tariffs, as companies began moving vehicles and parts across the border in preparation. But there's so much commerce that crosses the borders everyday that it'll be hard to mitigate the impact, he said.
"These tariffs are gonna cause immediate and lasting disruption to the supply chain, going to increase manufacturing costs and are eventually going to show up in the dealer show room, and that is of great concern to us."
Glenn Stevens with the group MichAuto told Gilbert no industry will be impacted by tariffs as much as the auto industry.
"These tariffs are gonna cause immediate and lasting disruption to the supply chain, going to increase manufacturing costs and are eventually going to show up in the dealer show room, and that is of great concern to us," Stevens said.
MichAuto officials say Michigan will be among the states most affected by tariffs and they believe there are better ways than tariffs to accomplish the goals of reducing drug trafficking and illegal immigration.
