Detroit auto stocks jump on report of tariff relief for U.S. vehicles
DETROIT – Shares of the Detroit automakers jumped Friday afternoon following a report that President Donald Trump is considering “significant tariff relief” for the production of vehicles in the U.S.
Stocks for General Motors, Ford Motor and Chrysler parent Stellantis shifted from trading level or down to up roughly 2% to 4% on the report from Reuters.
The news organization, citing Republican Senator Bernie Moreno of Ohio and auto officials, said the potential change could “effectively eliminate much of the costs major car companies are paying.”
“The signal to the car companies around the world is, look, you have final assembly in the U.S.: we’re going to reward you,” Moreno told Reuters during an interview. “For Ford, for Toyota, for Honda, for Tesla, for GM, those are the almost in order the top five domestic content vehicle producers -- they’ll be immune to tariffs.”
Reuters reported that the changes could include extending a tariff offset of 3.75% for five years as well as adding U.S. engine production to the relief.
“The signal to the car companies around the world is, look, you have final assembly in the U.S.: we’re going to reward you,” Moreno told Reuters during an interview. “For Ford, for Toyota, for Honda, for Tesla, for GM, those are the almost in order the top five domestic content vehicle producers -- they’ll be immune to tariffs.”
Another tariff policy in full reverse except US taxpayers get to bail them out for doing something they were already doing years ago.