The Trump administration's tariff policies are scheduled to go into effect starting Saturday, February 1 (tomorrow), levying a 25% import tax for goods from Mexico and Canada alongside a 10% tariff on imports from China. The White House denied a report on Friday that signaled the president and his team were considering pushing back tariffs to start on March 1.
"The reality is it actually takes some time to get the customs folks to put in a tariff lines and to put that in their system. So that alone should take about a week to ten days, and then the president may want to leave some additional room for negotiations," Evercore ISI chief strategist for international affairs and public policy Sarah Bianchi says about the timeline of when these tariffs could start materializing for import prices.
Bianchi emphasizes that a 25% tariff would greatly affect the auto industry: "In Mexico, we import a lot... auto parts and production. A lot of that is in Mexico. So certainly hugely impactful for GM (GM), Ford (F), and others. And then, of course, on the oil (CL=F, BZ=F) side, as was mentioned in Canada, very, very significant. So these are very intertwined economies."
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This post was written by Luke Carberry Mogan.