Key Takeaways
Shares of General Motors ( GM ), Ford Motor ( F ), and Chrysler parent Stellantis ( STLA ) surged Wednesday as the White House granted the automakers a one-month exemption from new tariffs on Canada and Mexico.
"We are going to give a one-month exemption on any autos coming through USMCA ," White House Press Secretary Karoline Leavitt said. "Reciprocal tariffs will still go into effect on April 2, but at the request of the companies associated with USMCA, the president is giving them an exemption for one month so they are not at an economic disadvantage."
Earlier Wednesday, Commerce Secretary Howard Lutnick said in an interview that President Donald Trump was considering easing some the duties on certain sectors, and the auto industry may be one of them.
President Trump also floated the idea of giving tax breaks to buyers of U.S.-manufactured cars Tuesday night in his address to a joint session of Congress.
Lutnick told Bloomberg Television that Trump may be giving some tariff relief to certian sectors, saying, "It could well be autos, it could be others as well."
The Commerce Secretary noted that the administration will consider lowering duties on companies that comply with the regulations of the USMCA trade agreement negotiated with Canada and Mexico in Trump's first term. Lutnick added that all of the " Big Three " automakers are compliant with that deal.
Also helping lift carmaker shares was a comment Trump made in last night's address to Congress, when he said, "I also want to make interest payments on car loans tax deductible—but only if the car is made in America."
Even with today's gains for the "Big Three" ranging from about 5% to 8%, only General Motors shares are trading in positive territory for the past year.
UPDATE—This article has been updated with the White House statement granting automakers the one-month tariff exemption .
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