Trump delays auto tariffs. Pickup trucks might explain why
Published On Mar 6, 2025, 1:28 AM
President Trump's recent decision to delay the implementation of 25% tariffs on auto imports from Canada and Mexico has given the U.S. auto industry a temporary reprieve. Many key vehicles, especially popular models like full-sized pickup trucks, would have faced significant cost increases due to these tariffs. The White House has proposed a 30-day exemption for autos that comply with USMCA regulations, allowing automakers to maintain current prices in the short term. This delay is particularly beneficial for manufacturers such as GM, Ford, and Stellantis, as about a third of pickups sold in the U.S. are built in Canada and Mexico. The delay gives the industry time to seek a long-term solution to avoid adding significant costs to consumers amid already rising vehicle prices.
Stock Forecasts
F
Positive
The extended exemption period may lead to stability in auto stocks as companies avoid immediate costs associated with tariffs. Additionally, if a long-term resolution is reached, it could further enhance investor confidence in U.S. automakers.
GM
Negative
GM faces potential cost pressures if tariffs are implemented in the future due to its high dependency on the Mexican manufacturing base for pickups. This could lead to volatility in the stock as investors weigh future risks.
STLA
Positive
Stellantis could benefit from the temporary delay, which may allow it to manage inventory costs more effectively in the short term. Continued production in North America can bolster its market position as well.
Related News
Ford, GM, Stellantis granted 1-month tariff exemption after call with Trump
Mar 5, 2025, 2:20 PM
Last night in his address to Congress, President Donald Trump said Detroit automakers were “so excited” about the administration’s plans for the auto industry. But one area that isn’t giving excitement for automakers is tariff policy.
Stock market today: Dow, S&P 500, Nasdaq futures dip despite tariff relief for automakers
Mar 5, 2025, 11:16 PM
US stock futures held steady after a volatile day of trading ended in a rally, driven by President Donald Trump's one-month pause on tariffs targeting automakers.
Stock market today: S&P 500, Nasdaq, Dow rally after Trump pauses Canada, Mexico auto tariffs
Mar 5, 2025, 4:08 PM
Stocks rallied on Wednesday as President Trump granted a one month tariff exemption to automakers.