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.

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