After President Donald Trump delayed the tariffs on automobile companies that comply with USMCA rules last week, the tariffs on carmakers were inevitable due to the high magnitude of imports, explained CNBC’s Jim Cramer in an X post.
What Happened: The Trump administration provided a one-month exemption to the automakers following the United States-Mexico-Canada Agreement, negotiated during his first term. These included automotive parts, accessories, and other supplier products along with completed vehicles.
As a one-month relief helped companies to chalk out their business plans, Cramer said that “Tariffs on cars are and have been expected,” as more than half the cars sold in the U.S. are imports and the tariffs on them are very small.
Trump has been talking about his protectionist policies much before assuming office. Cramer hinted that these tariffs were inevitable.