Shares of major automakers closed higher on Monday following comments from President Donald Trump, who expressed support for the industry in the wake of his 25% auto tariffs. During a meeting with Salvadoran President Nayib Bukele, Trump mentioned that he was looking to assist car companies facing challenges as they shift their production to the U.S. Trump noted that automakers “need a little bit of time” to adjust their supply chains and move production to American soil, specifically mentioning the need for more time to switch to parts previously sourced from countries like Canada and Mexico. His remarks, though vague, sparked optimism among investors, pushing stocks of companies like Ford Motor, General Motors (GM), and Stellantis (parent of Chrysler) higher by 3% to 6%. Other automakers, including Rivian Automotive and Toyota Motor, also saw gains, with Rivian’s stock rising by 4.9%.
Trump’s comments came just days after he enacted a 25% automotive tariff on imported vehicles on April 3. While the tariffs have remained in effect, Trump reduced tariffs on most countries last week and granted exemptions to certain tech companies like Apple, but the automotive sector continued to face pressure. Automakers have been adjusting their strategies in response to these tariffs. Domestic manufacturers like Ford and Stellantis have introduced temporary employee pricing deals, while foreign companies like Jaguar Land Rover have halted U.S. shipments. Hyundai Motor, in an effort to ease consumer concerns, pledged not to raise prices for at least two months.
In response to the tariffs, GM has been ramping up U.S. production, particularly at its pickup truck plant in Indiana. Additionally, the company has canceled previously scheduled downtime at a plant in Tennessee, which manufactures Cadillac crossovers. This change in plans, confirmed by GM, reflects the company’s ongoing adjustments to manage vehicle inventory and meet demand.
Overall, Trump’s comments were seen as an acknowledgment of the difficulties the automotive industry is facing due to the tariffs, and his expressed willingness to help provided a much-needed boost to automaker stocks. As companies continue to adjust their production strategies, it remains to be seen how long the tariffs will remain in place and what further measures, if any, will be implemented to support the industry.
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