ST. LOUIS – The White House is doubling down on President Donald Trump’s new trade strategy focusing on higher tariffs on imported goods.
“We believe that tariffs are a necessary tool to protect our jobs and our industries from other countries as well as the labor value of our workers in a globalized market,” Vice President JD Vance said.
President Trump now says there will be no exemptions on the 25% steel and aluminum tariffs announced last week. The White House is reportedly adding to a growing list of countries that will face reciprocal tariffs on April 2.
“The North American automotive sector is very vulnerable, very fragile,” Jonathon Azzopardi, CEO and president of Laval Tool, said.
The Tecumseh, Ontario, company makes molds and builds tooling for the auto, heavy truck, and household construction industries. Azzopardi said 100% of what they build ends up in the U.S.
“Our customers are concerned, obviously. They want to make sure that they’re insulated as much as possible. They don’t have 25% factored into their price,” he said. “We have a responsibility to our clients to make sure that we can, like I said before, mitigate, eliminate or absorb those tariffs as much as possible.”
St. Louis automotive expert Jay Grosman believes urgency is the best way for consumers to head off the tariff uncertainty.
“If you’re looking to buy a new car, I am recommending you go get your car now and don’t roll the dice,” he said.
Optimistically, Grosman says acting now affords consumers the best of both worlds.
“They can still get a good deal on new cars cause there’s a good supply, but they can still get a good amount on their used vehicle as well,” Grosman said.
But big picture, Grosman knows tariffs would create a more challenging climate for the automotive industry.
“Unless this gets worked out, we’re going to have a little bit of a mess on our hands,” he said.
President Trump has asked Americans to bear with him as he implements new tariffs. Administration officials maintain they’ll still lower costs. A recent economic survey shows consumer confidence has fallen for the third consecutive month. The data suggest some Americans may be cautious spending their money with policy uncertainties.