US stocks gain on Trump pausing auto import tariffs on Canada and Mexico
Premium|
Take advantage of 50% OFF on your first month.
50% OFF and access to ALL our articles and insights.
You have reached your limit of 5 free articles for this month.
Take advantage of the Special Price just for today!
50% OFF and access to ALL our articles and insights.
Subscribe to Premium- 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.
- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.