White House Confirms Trump Weighing Potential Tariff Relief For Auto Industry, But Specifics Awaited
Synopsis
CNBC, however, mentioned that Trump said tariffs on cars imported from Canada could rise.
Shares of most major U.S. automakers rose in extended trading on Wednesday after the White House confirmed that President Donald Trump is indeed considering sparing automakers from some of his tariffs.
Late on Wednesday, the Financial Times reported that Trump would exempt car parts imported from China, as well as steel and aluminum, from his "fentanyl" tariffs in a "destacking" of duties.
The report, which cited two people with knowledge of the matter, noted that the exemptions would not include the 25% tariff Trump imposed on all imports of foreign-made cars and a separate 25% levy on parts set to take effect in May.
However, no specifics were revealed when the White House confirmed the move with CNBC.
The report mentioned that Trump said tariffs on cars imported from Canada could rise.
Shares of General Motors (GM), Stellantis NV (STLA), Tesla, Inc (TSLA), Rivian Automotive, Inc. (RIVN) and Lucid Group, Inc. (LCID) rose in after-hours trading on Wednesday. Ford Motor Co.'s stock (F), however, slipped.
U.S. automakers have already raised concerns about Trump's steep tariffs, with analysts estimating the levies could bump car prices by hundreds of dollars.
According to CNBC, six top policy groups representing the U.S. automotive industry lobbied the Trump administration this week to exclude auto parts from his trade war.
Wedbush Securities recently said that upending a global supply chain built over decades cannot happen overnight, arguing that the smarter approach would be to focus on finished cars rather than targeting auto parts with tariffs.
Stellantis shares are down more than 31% year to date, while Ford and GM have fared relatively better with losses of 1.3% and 14%, respectively.
Tesla has dropped over 35%, Rivian is down about 11%, and Lucid has slid more than 21%.
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