Trump flags auto tariff relief, shares rise
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The news: Donald Trump is weighing short-term tariff exemptions for US carmakers as new duties threaten to disrupt supply chains and increase manufacturing costs.
Speaking from the Oval Office on Monday (Tuesday AEST) during a meeting with El Salvador's President Nayib Bukele, Trump said companies shifting parts production from Canada and Mexico “need a little bit of time” and that he is “looking at something to help car companies.”
The context: The comments follow recent exemptions for smartphones, laptops, memory chips, and other electronics from tariffs, though officials indicated those items may still face tariffs in the future.
Trump also said he anticipated tariffs on pharmaceutical imports in the “not too distant future” and described himself as a “very flexible person.”
Automakers have warned that Trump's tariffs make it harder to assemble vehicles in the US. A 25% tariff on imported vehicles took effect on 3 April, with duties on parts set to begin by 3 May.
The numbers: Shares in automakers rose following Trump's remarks. General Motors gained 3.5%, Ford increased by 4.1% and Stellantis rose by 5.6%.
The sources: Bloomberg, The Wall Street Journal, Reuters
