DETROIT, April 14, 2025 — U.S. auto stocks soared Monday after President Donald Trump suggested he may grant temporary tariff exemptions to car manufacturers, offering a potential lifeline to an industry reeling from steep import duties. Ford, General Motors, and Stellantis all saw their shares jump as much as 5% in midday trading, reversing earlier losses and outpacing the broader market11012.
Speaking from the Oval Office, President Trump acknowledged the challenges facing automakers as they scramble to adapt to his administration’s 25% tariffs on imported vehicles and auto parts. “I’m looking at something to help car companies with it,” Trump told reporters. “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”12612.
The president’s remarks come just days after the tariffs on foreign vehicles took effect on April 3, with additional levies on imported auto parts—including transmissions and engines—set to be enforced by May 3126. Trump’s comments signal a possible reprieve for automakers, who have warned that broad tariffs on parts could drive up costs, trigger layoffs, and ultimately raise prices for American consumers2612.
The prospect of tariff relief sent shares of Detroit’s Big Three automakers sharply higher:
- Ford: Up more than 5%
- General Motors: Gained as much as 5.1%
- Stellantis: Rose up to 6.8% at intraday highs11012
Other automakers with significant U.S. operations, including Toyota and Honda, also saw modest gains. Electric vehicle makers like Rivian and Lucid rallied, while Tesla reversed earlier losses to finish 1% higher1012.
Analysts estimate that Trump’s tariffs could add $100 billion in costs to the automotive sector, threatening to disrupt supply chains and depress both new and used car sales12. Automakers have lobbied for targeted exemptions, particularly for inexpensive parts, arguing that blanket tariffs would undermine efforts to boost U.S. manufacturing and could force companies to issue profit warnings or cut jobs26.
The president’s evolving tariff strategy has injected volatility into financial markets and left automakers—and their global supply chains—grappling with uncertainty. While Trump maintains that tariffs are necessary to revitalize American industry, his willingness to consider exemptions reflects mounting pressure from both domestic manufacturers and international trading partners2612.
Trump’s comments follow a recent pause in his broader tariff campaign, which had imposed duties ranging from 10% to 50% on imports from over 180 countries. While some sectors, such as technology, have received temporary relief, the auto industry’s fate remains in flux1212.
Industry leaders are now watching closely for formal guidance from the White House on which products or companies might qualify for exemptions—and for how long. In the meantime, the stock market’s reaction underscores the high stakes for automakers and the broader U.S. economy as trade policy continues to evolve11012.
For ongoing updates on U.S. trade policy and the auto industry, follow our coverage as the story develops.
