Topline
President Donald Trump said Monday he is “looking at something to help some of the car companies” with the tariffs he has imposed, and shortly after the comment from the Oval Office, share prices for American automakers Ford and General Motors increased.
Key Facts
When asked by a reporter about “short-lived product exemptions” he had previously mentioned, Trump said he was talking about helping car companies that “need a little bit of time” to make parts in the U.S. rather than import them.
Imported cars are facing 25% tariffs Trump announced in late March, and auto parts are set to face similar 25% tariffs no later than May 3.
Shortly after Trump’s comment about looking to help the car companies while they move more production to the U.S., shares of General Motors, Ford and Stellantis were up about 4.8%, 5% and 4.5%, respectively, as of 1:20 p.m. EDT.
Get Forbes Breaking News Text Alerts: We’re launching text message alerts so you’ll always know the biggest stories shaping the day’s headlines. Text “Alerts” to (201) 335-0739 or sign up here.
Big Number
$100 billion. That’s how much analysts expect auto industry costs, for both importing and making their vehicles, to increase as a result of Trump’s tariffs, CNBC reported over the weekend. They also expect sales to drop in the millions, and for cars both new and used to have higher prices.
Were Auto Tariffs Part Of Trump’s 90-Day Pause?
No. Trump announced a 90-day pause on his sweeping tariff policy on April 9, days after tariffs ranging from 10% to 50% were applied to more than 180 countries, citing the fact that dozens of countries reached out to the U.S. to negotiate and didn’t retaliate with their own tariffs. But, the pause did not include the 25% tariff on imported vehicles or the 25% tariff on steel and aluminum. There was also no pause on the tariffs facing Canada and Mexico, and tariffs on China were increased to more than 100%.
Key Background
Trump has made tariffs a key element of his presidency so far, deeming April 2—when he announced tariffs on more than 180 countries that were later paused—“Liberation Day.” He said the day would go down as “one of the most important days” in American history and that it was a “declaration of economic independence.” The tariffs had an almost immediate negative effect on the economy, though, with economists and financial experts warning shortly after that “the prospect of a recession has increased.” Stocks dropped globally for days after the announcement, and some billionaires expressed concern with Trump’s plan and called for a pause. Trump announced the 90-day pause on tariffs—after White House officials repeatedly said he wouldn’t—on April 9, and stock markets almost immediately turned around, with the three major indexes seeing their largest point gains in their histories.
Tangent
When asked if the “short-lived product exemptions” could apply to Apple products, Trump said “I’m a very flexible person. I don’t change my mind, but I’m flexible.” He added there will “maybe” be things coming up and said, “I speak to Tim Cook. I helped Tim Cook recently.” Apple was among the technology stocks hurt after Trump announced his aggressive tariff policies, but when the White House said Friday it would exempt smartphones and other high-tech products Apple’s stock turned around.
Further Reading
Apple Soars After Tariff Exemptions—And iPhones May Not Get More Expensive After All (Forbes)
Trump Floats Exceptions for Auto Parts Facing 25% US Tariffs (Bloomberg)
Trump Announces 90-Day Pause On Hefty Tariffs — Though 10% Levies Will Remain (Forbes)
Trump’s ongoing 25% auto tariffs expected to cut sales by millions, cost $100 billion (CNBC)
