Trump's Tariff Tango: Dancing Between Trade Wars and Temporary Fixes

President Trump hints at temporarily exempting the auto industry from tariffs to help automakers adjust supply chains. While conceding potential flexibility in his trade policies, market uncertainty persists. Meanwhile, discussions with global leaders continue amidst concerns over economic impacts and Apple's strategic shifts due to fluctuating tariffs.

In a recent strategic shift, President Donald Trump proposed that the auto industry might temporarily escape the stringent tariffs he has previously imposed. This move aims to grant carmakers the necessary time to readjust their supply chains.

Trump, addressing reporters in the Oval Office, suggested that the automakers are in the process of relocating production facilities from Canada, Mexico, and other countries back to the United States. Despite initially describing the tariffs as permanent, Trump's hard stance on trade appears to be softening in response to potential economic and political repercussions.

Following a notable bond market reaction last week, which saw US debt interest rates rise, Trump adjusted tariffs on numerous countries to 10 per cent for a 90-day negotiation window. Apple Inc., dealing with fluctuating tariffs, saw its stock affected even as it considered moving some iPhone production from China to India.

(With inputs from agencies.)