President Donald Trump seems to believe that tariffs can help to bring manufacturing back to the States.
Trump’s tariffs have so far been aimed at four targets, the U.S. neighbors Canada and Mexico, China and, soon to come, the European Union.
During his first term Trump negotiated the U.S.M.C.A. with Mexico and Canada, a free trade zone covering the U.S. and its neighbors. He is now attempting to change the rules of it. But the way he does so is inconsistent.
On January 21 Trump promised tariffs on Canada and Mexico. On February 1 he announced them. Three days later he delayed the implementation of those tariffs. On February 27 he said the tariffs would go into effect on March 4. On March 5 he was again forced to pull back (archived):
President Trump said on Wednesday that he would pause tariffs on cars coming into the United States from Canada and Mexico for one month, after a 25 percent tariff that he placed on America’s closest trading partners a day earlier roiled stock markets and prompted stiff resistance from industry.
Karoline Leavitt, the White House press secretary, read a statement from Mr. Trump on Wednesday saying that White House had spoken with the three largest auto makers, and that a one-month exemption would be given to cars coming in through United States-Mexico-Canada Agreement.
A one-month exemption is a joke. It takes years to move parts production from one country to another. There are hundreds of companies in Mexico, Canada and the U.S. which make the myriad parts that go into a car. It is an completely integrated industry which took years to build.
U.S. car manufacturers had trusted that U.S.M.C.A. would hold. Should the tariffs apply anytime soon they will have to increase their prices by hefty margins or halt their production.
Hellbound and Down 
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