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Auto stocks are getting a boost as Trump weighs tariff exemptions
Auto manufacturing stocks rose sharply after President Donald Trump hinted at tariff relief .
He told reporters Monday that a temporary exemption on imported vehicles and car parts is being considered, suggesting that firms need a moment to onshore production.
"I'm looking at something to help car companies with it," he said . "They're switching to parts that were made in Canada, Mexico and other places, and they need a little bit of time, because they're going to make them here."
The announcement sent top manufacturers surging in the early afternoon.
Stellantis and General Motors — which assemble a large portion of their US-sold vehicles in Canada and Mexico — rose as much as 6.8% and 5.1%, respectively. Ford was another winner, gaining more than 5%.
Upside also extended to American Depository Receipts of carmakers that operate in the US, including Honda and Toyota .
Electric-vehicle maker Tesla joined the rally, with a more muted gain of about 1%, erasing a mid-day loss of 3%. Rivian and Lucid rose 5.4% and 3.6% at intraday highs, respectively.
Trump's first implemented auto tariffs on March 27, emphasizing that the 25% duty was a permanent move. Analysts reacted sharply to the policy, warning that the tariffs could trigger significant demand destruction as prices rise.
In early April, the president went further, issuing a flurry of aggressive tariffs on all US trade. This caused stock markets to whipsaw through the past seven trading sessions before a 90-day policy pause helped the S&P 500 notch its best week since 2023 .
Stocks continued to climb Monday after Trump announced tariff exemptions on key tech products coming out of China. Exempt products included phones, computers, and even solar panels, minting winners in the tech and energy sector.
Read the original article on Business Insider