Automaker stocks moved higher on Wednesday afternoon after President Donald Trump’s decision to delay the introduction of some tariffs on the sector.
The US has introduced 25% tariffs on imports from Canada and Mexico but Trump on Wednesday granted automakers a one-month exemption.
Major US automakers including the “Big Three” General Motors, Ford and Stellantis had urged the administration to reconsider the tariffs, which would have had a significant impact on the highly integrated North American auto industry.
The automakers asked Trump to waive the tariffs on vehicles that comply with the 2020 US-Mexico-Canada Agreement’s rules of origin.
"We are going to give a one-month exemption on any autos coming through USMCA... so they are not at a disadvantage," White House press secretary Karoline Leavitt told reporters. "Reciprocal tariffs will still go into effect on April 2."
Shares of General Motors Company (NYSE:GM) added 7.8%, Ford Motor Company (NYSE:F) added 5.7% and Stellantis NV (NYSE:STLA, EPA:STLA) added 9.3%.
Nissan (OTC:NSANY) shares added 3.8%, Honda Motor (NYSE:HMC) was up 5.4% and Toyota Motor (NYSE:TM) was up 6.5%.