US: Trump car tariff pause boosts automakers, stocks
WALL Street stocks jumped on Wednesday, rallying after the White House paused tariffs on the car industry in a move the lifted the auto sector and buoyed the broader market.
Stocks struggled to get traction in the early part of the session, extending a difficult run amid worries about President Donald Trump’s tariffs and weakening economic data.
But rumours of the auto exemption - confirmed in the afternoon at a White House press conference - helped spur a turnaround.
The Dow Jones Industrial Average finished up 1.1 per cent at 43,006.59.
The broad-based S&P 500 advanced 1.1 per cent to 5,842.63, while the tech-rich Nasdaq Composite Index rose 1.5 per cent to 18,552.73.
US automakers have been among the most exposed to Trump’s trade policy, with 25 per cent tariffs on Mexico and Canada, warning of devastating impacts from the levies.
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But following talks with the “Big Three” US automakers - Stellantis, Ford and General Motors - Trump decided to “give a one-month exemption on any autos coming through USMCA,” White House Press Secretary Karoline Leavitt said, referring to the North American free trade pact.
Shares of each of the three automakers rose about six per cent or more, while auto supply companies like Manga International and Lear also gained as the broader market picked up momentum.
“It confirms that investors suspect, which is that Trump & Co are watching the markets and they don’t want to have a bear market named after them,” said Jack Ablin of Cresset Capital.
Among individual companies reporting results, soup brand Campbell’s lost 2.9 per cent while Foot Locker climbed 5.1 per cent. AFP
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