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Today, we’re bringing you the latest information on how tariffs could affect the auto industry, including the Commerce Secretary hinting that President Trump could exempt the auto industry. Plus, we’re covering how Honda is bringing Civic production back to Indiana, and Paul and Kyle’s wild adventures this weekend.

Show Notes with links:

• In a primetime address to Congress, former President Donald Trump defended his sweeping tariffs, acknowledging a potential "adjustment period" but emphasizing the tariffs' role in boosting the U.S. economy. 
  • As many as 20,000 vehicles per day could be cut from North American production due to parts shortages and high costs.
  • Parts stockpiles could run out within a week, even after companies moved as many parts as possible across the border ahead of the tariff deadline, according to Stephanie Brinley, principal automotive analyst at S&P Global Mobility.
  • Many suppliers cannot absorb added costs and may push automakers to cover tariffs, potentially halting parts supply.
  • Tariffs on steel and aluminum will increase to 25% on March 12, with further auto import tariffs possibly starting April 2.
  • If tariffs persist, North American vehicle sales could drop 10%, and smaller suppliers might need financial assistance to survive.
  • In an interview with Bloomberg this morning, Commerce Secretary Howard Lutnick hinted that President Donald Trump may exclude certain sectors, including autos, from the 25% tariffs on Canada and Mexico. The decision could favor industries that comply with the United States-Mexico-Canada Agreement (USMCA) content provisions.
    • “My understanding is the Big Three say they produce cars that are compliant under USMCA, which means they have sufficient U.S content in them to be part of the USMCA agreement,”

• The White House celebrated a "Monday morning win" as Honda announced plans to move production of its Civic model from Mexico to Indiana, beginning in May 2028. The move was touted as part of "the Trump effect." 
  • The Indiana plant is expected to produce about 210,000 Civics annually.
  • Honda did not confirm the change directly, instead emphasizing its ability to adjust production based on customer needs and market conditions, and highlighting its history of building the Civic in Indiana since 2008.
  • Trump supporters, including economist Stephen Moore and Senator Jim Banks, praised the move as a sign that tariffs are driving "made-in-America" job growth.
  • Senator Jim Banks stated, "President Trump has taken the ‘kick me’ sign off the backs of our workers and manufacturers. This report is great news for Hoosiers and all Americans — and it’s only just the beginning."

• Paul and Kyle made some trouble this past weekend, with Paul buying an EV and learning some valuable lessons about the state of charging infrastructure. Meanwhile, Kyle spent some time in NYC and visited a 3 Michelin Star restaurant. 

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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