The Trump administration's auto tariffs have caused confusion and whiplash in the industry, with contradictory policy proposals emerging in the past 24 hours. On Wednesday night, the White House announced that China may be granted exemptions on auto part tariffs, but Canada's car tariffs might increase. This news came after a day of conflicting reports and denials from administration officials.

The confusion began when the Wall Street Journal reported that President Trump was considering slashing his 145% tariffs on China, potentially lowering some of them to 50%. Trump himself hinted at decreases during a press event, saying, "145% is too high. It will come down substantially." However, Treasury Secretary Scott Bessent denied the report the next morning, stating that the U.S. would not lower tariffs unilaterally.

Hours later, the Financial Times reported that Trump was indeed planning to eliminate his recently-imposed tariffs on steel, aluminum, and car parts imported from China. The White House confirmed to CNBC that some unilateral exemptions were under consideration. This news sent automotive stocks trending upwards, as carmakers would have received some relief from the tariffs.

However, the relief was short-lived, as Trump told reporters in the Oval Office that Canada - not China - might see auto tariffs further increase. "They took a large percentage of the carmaking, and I want to bring it back to this country," he said. This contradictory statement has left the industry reeling, with many wondering what the administration's true intentions are.

The auto industry has been vocal in its opposition to the tariffs, citing the devastating impact they would have on the industry. A coalition of powerful U.S. auto industry players wrote to the administration, citing a Center for Automotive Research report that estimated a 25% auto tariff would increase costs to the industry by up to $107 billion. The coalition warned that tariffs on auto parts would "scramble the global automotive supply chain and set off a domino effect that will lead to higher auto prices for consumers, lower sales at dealerships, and make servicing and repairing vehicles both more expensive and less predictable."

The Trump administration's vacillation on auto tariffs is not new. In the past, the administration has wavered on who they are tariffing, what they are tariffing, and how much those tariffs are. This latest episode has only added to the uncertainty and confusion in the industry.

The implications of these tariffs are far-reaching, with the potential to devastate the American auto industry. As the industry waits with bated breath for the administration's next move, one thing is clear: the Trump administration's auto tariffs have caused chaos and uncertainty, and it's unclear what the future holds.

In the meantime, the auto industry will continue to navigate the complex and ever-changing landscape of tariffs and trade policies. As the situation continues to unfold, one thing is certain: the Trump administration's auto tariffs will have a lasting impact on the industry.