- Trump administration will halt auto tariffs from Mexico and Canada for one month.
- Dow Jones, NASDAQ, S&P 500 jump more than 1%.
The US stock market lurched upward in the mid-afternoon session on Wednesday after US President Donald Trump offered a one-month pause on 25% tariffs on vehicle imports manufactured in Canada and Mexico.
The Detroit automakers rallied on the news. Ford (F) stock shot up 5%, while General Motors (GM) stock lifted 7%, and Stellantis (STLA) spiked 9%.
As part of the deal, announced during an afternoon press conference by White House Press Secretary Karoline Leavitt, vehicles that are part of the USMCA trade agreement signed under President Trump’s first term will be exempt from the 25% tariff on goods from Mexico and Canada for one month.
“The President is giving them an exemption for one month, so they are not at an economic disadvantage,” Leavitt said.
The deal echos Trump’s one-month delay on Canada-Mexico tariffs at the beginning of February.
This sent the rest of the US stock market higher as many expect that Trump might be lenient on other parts of the US economy as well. Some think the tariffs will slowly fade away as President Trump enacts new bilateral trade deals with multiple nations.
The Dow Jones Industrial Average (DJIA) has gained 1.2% on the news, while the NASDAQ has climbed 1.4%. The S&P 500 is slightly trailing the first two indices.
