Barclays today highlighted that finished automobile exports are 5% of Mexico’s GDP. Yet with 25% tariffs announced yesterday, the peso is only down 0.8% and it’s still above when Trump was re-elected.

The market thinks it’s all a bluff.

Now, Canada’s Globe & Mail reports that Ontario “expects the US administration to significantly ease the impact of auto tariffs on Canada” after a call yesterday between Ontario Premiere Doug Ford and US Commerce Secretary Howard Lutnick.

Lutnick callard Ford right after Trump’s announcement, the report said.

“The source said the changes likely won’t eliminate the impact of tariffs
but will give Canadian and Ontario automakers a very significant
relative advantage against the rest of the world.”

The announcement could come April 2 or later, the report says.