Trump Considers Softening 'Very Dumb' Tariffs Just A Day After Implementing Them

Good morning! It's Wednesday, March 5, 2025, and this is The Morning Shift, your daily roundup of the top automotive headlines from around the world, in one place. This is where you'll find the most important stories that are shaping the way Americans drive and get around.

In this morning's edition, we're diving into President Donald Trump's tariffs on imports from Mexico and Canada, which could already be softening, and Tesla watching its sales drop in yet another global market. We're also going to look at the struggles at Nissan, including the growing calls for its CEO to step down, and will see how one day of 25 percent tariffs hit the value of America's automakers.

One of president Donald Trump's biggest promises from the campaign trail came into effect Tuesday when 25 percent tariffs were added to millions of dollars worth of goods imported into the U.S. from Canada and Mexico. Trump's victory could be short-lived, however, as retaliatory tariffs from Canada led the U.S. commerce chief to admit that the administration may soften its tact.

Canadian leader Justin Trudeau responded to America's tariffs with import taxes on $21 billion worth of American goods with immediate effect. While announcing the tariffs, Trudeau branded Trump's move as "very dumb," Automotive News reports.

After Canada's response, the Trump administration appears to be softening its stance on trade with its closest ally, as commerce secretary Howard Lutnick said the U.S. government may now attempt to "meet in the middle" with the Canadians on trade:

"Now, both the Mexicans and the Canadians were on the phone with me all day today, trying to show that they'll do better, and the president is listening," Lutnick said in an interview on Fox Business' "Kudlow" program.

"So I think he's going to work something out with them. It's not going to be a pause ... but I think he's going to figure out you do more, and I'll meet you in the middle somewhere, and we're going to probably be announcing that tomorrow," he said.

Lutnick said that an announcement could be made by the "Home Alone 2" actor as soon as today, meaning that Trump's long-promised tariffs that would "make America rich again" would have lasted, checks notes, less than a day. Talk about all fart and no poo.

Many experts warned that the tariffs would hit the American auto industry hard, with prices on some models predicted to rise as much as $12,000, reports Gizmodo. Thankfully, Tesla doesn't need tariffs to tank its sales, as it's doing that all by itself right now.

Tesla sales have plummeted in Europe, where buyers are fed up with company boss Elon Musk's meddling in right-wing politics. Now, the drop in demand is spreading to China, where sales of Tesla cars are down by 49 percent, reports Bloomberg:

The carmaker's shipments plunged 49% in February from a year earlier to 30,688 vehicles, according to preliminary data from China's Passenger Car Association. That was the lowest monthly figure since July 2022 when it shipped just 28,217 electric vehicles and compounds a slow start in China — one of Tesla's most important markets — after it delivered 63,238 vehicles from its Shanghai factory in January.

The February decline came among challenging conditions in China, with Lunar New Year celebrations hitting sales days for Tesla and other automakers in the region. Tesla's drop is much more severe than other automakers, and is in stark contrast to BYD, its biggest EV rival in China.

While Tesla sales fell, BYD saw deliveries skyrocket by more than 160 percent to hit 318,000 pure electric and hybrid passenger vehicles. The differing fortunes was attributed to BYD's "more enticing" range of models that pack more tech and better value for consumers.

Tesla isn't the only automaker facing a tough time right now, as Nissan is also in a world of trouble as sales falter and interest wanes thanks to its aging lineup of uninspiring cars. The automaker is considering everything to try and turn around its fortunes, and even considered a merger with Honda to better prepare the two brands for the future.

Merger talks fell through last month, and now as sales continue falling and losses mount the automaker is calling for the departure of CEO Makoto Uchida, reports Automotive News. Uchida rolled out a raft of cost-cutting measures to try and save the brand, but improvements haven't come quick enough for some executives:

Board members have expressed frustration with the pace and depth of Uchida's reform, and the board is currently weighing possible successors. The nomination committee is expected to meet to recommend an interim successor on March 6. That candidate could be put to the full board for an official vote as early as next week, as Nissan formalizes its new executive lineup.

A departure of Uchida could pave the way for revived talks with Honda, which reportedly wanted to oust the Nissan CEO as part of a deal. A new boss at Nissan could also seek out new partners to revive the historic brand, including a potential deal with iPhone maker Foxconn.

News on the fate of Uchida could be public by the end of this week, meaning that broader reforms could soon roll out at the brand to turn around its fortunes. Hopefully.

Tariffs brought in on imports from Canada and Mexico may not have quite hit the sticker price on your favorite cars just yet, but that doesn't mean they haven't had much impact on their first day.

In fact, the implementation of tariffs from the U.S. and retaliatory efforts from Canada wiped millions of dollars from the value of America's biggest automakers yesterday, reports Automotive News. One day of tariffs wiped more than a billion dollars off the value of General Motors after share prices fell by 4.56 percent, and Ford's losses were close behind:

David Whiston, an equity analyst from Morningstar Research Services, calculated Tuesday morning that General Motors lost about $1.2 billion in market capitalization in early trading; Ford lost more than $900 million. Stellantis also was among the hardest hit of automobile manufacturers. Its stock price dropped more than 4 percent to $11.80 in Tuesday trading.

The fluctuations in share price at America's largest automakers underscores the uncertainty in the country right now. The impending trade war is hitting everything from the price of the Dollar to the value of America's car dealerships after "years of free trade has been blown up instantly," Automotive News added.

All this is before the real force of the tariffs on imports is really felt by American companies and consumers.

Happy Wednesday! How is your week going so far? Mine was going well, until I found out I have to move again in a few weeks, which isn't ideal.

But never fear, as the internet always has something to brighten your mood, and today it's the anniversary of the hula hoop, according to History.com. The "hip-swiveling toy" is celebrating 62 years on this fair planet today, as the site explains:

[Arthur] Melin and [Richard] Knerr were inspired to develop the Hula Hoop after they saw a wooden hoop that Australian children twirled around their waists during gym class. Wham-O began producing a plastic version of the hoop, dubbed "Hula" after the hip-gyrating Hawaiian dance of the same name, and demonstrating it on Southern California playgrounds. Hula Hoop mania took off from there.

So if you're feeling down today, find a hula hoop and ring in the toy's birthday. After all, you never see an unhappy person hula hooping, right?