News that U.S. President Donald Trump could give some industries a break on tariffs sent automotive shares higher Wednesday morning.
In an interview on Bloomberg TV, U.S. commerce secretary Howard Lutnick said Trump would be making an announcement on whether some imports from Canada and Mexico would be getting a break from the across-the-board 25 per cent tariffs.
He specifically mentioned the highly-integrated automotive industry, where some components cross the Canada-U.S. or Mexico-U.S. border several times en route to becoming a finished product.
“What he is thinking about is which sections of the market that can maybe — maybe he’ll consider giving them relief,” Lutnick told Bloomberg TV. “It could well be autos, it could be others as well.”
Industry analysts have estimated that the compounded tariffs could add several thousand dollars to the price of a finished vehicle, and have said the entire industry could grind to a halt within days if tariffs aren’t lifted.
In trading after Lutnick’s remarks, shares across the auto industry shot up.
In New York, shares of GM rose four per cent by 11:15 a.m., while Ford rose 3.2 per cent. In Milan, shares of Stellantis were up 5.4 per cent.
In Toronto, shares of parts manufacturers also got a lift, with Aurora-based Magna International rising four per cent and Guelph-based Linamar up 1.7 per cent.
