NM congressional delegation responds to Trump’s decision to delay auto tariffs

Automakers were granted a one-month reprieve after the Trump administration delayed enforcement of 25% tariffs on cars coming into the United States from Mexico and Canada amid an escalating trade war. But the move did little to ease the concerns of New Mexico’s federal delegation.

U.S. Sen. Ben Ray Luján, a Democrat, called the trade war reckless and said Americans should expect high prices on groceries, energy, cars, electronics and more.

“Instead of strengthening our economy, he’s putting American jobs and businesses at risk while pushing the Tax Scam 2.0 for the wealthy and gutting essential programs,” Luján said. “These tariffs could cost American families up to $2,000 a year in higher prices.”

The auto industry urged President Donald Trump to waive 25% tariffs on Mexico and Canada, which experts have said could lead to higher car prices, job losses and potential closures of auto parts suppliers.

White House Press Secretary Karoline Leavitt said the tariffs for car manufacturers would go into effect April 2.

“We spoke with the Big Three auto dealers,” Leavitt said during a White House briefing on Wednesday, referring to Ford, General Motors and Stellantis. “We are going to give a one-month exemption on any autos coming through (U.S. – Mexico – Canada Agreement).”

Following the announcement, shares of major automakers in the U.S., Asia and Europe jumped as much as 6%.

The latest Trump tariff delay prompted Democratic U.S. Rep. Gabe Vasquez to call for all tariffs to be rolled back.

“The president doesn’t get credit for solving an unnecessary problem he created,” Vasquez said. “The uncertainty around tariffs is impacting farmers, ranchers, manufacturers and border communities in my district.”

Trump was also open to hearing requests from other industries seeking exemptions, Leavitt said.

U.S. automakers rely heavily on labor from Mexico and Canada, and have since the early days of car manufacturing in the U.S.