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Auto Stocks Move Higher After Report Of Import Tariff Delay

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Auto Stocks Move Higher After Report Of Import Tariff Delay

Auto stocks were mostly higher following a Bloomberg report U.S. President Donald Trump is planning to delay auto tariffs by up to six months.

What Happened

The Trump administration has a soft deadline to decide if it will introduce duties on car and auto part imports. If negotiations remain ongoing, the decision to impose tariffs can be extended 180 days. On Wednesday, sources close to the matter told CNBC the Trump administration is likely to let the deadline pass which would delay potential tariffs by six months.

The U.S. administration believes tariffs can be used to gain leverage against trading partners, especially the European Union and Japan, CNBC reported. But the U.S. could be negatively impacted by retaliatory tariffs as the E.U. already has a list of U.S.-made items it can target.

Auto stocks traded higher following the report and were up as follows at time of publication:

  • Fiat Chrysler Automobiles NV (NYSE: FCAU): up 1.7 percent.
  • Ford Motor Company (NYSE: F): up 1.4 percent.
  • Toyota Motor Corp (NYSE: TM): up 1.2 percent.
  • General Motors Company (NYSE: GM): up 0.8 percent.
  • Nio Inc - ADR (NYSE: NIO): up 0.7 percent.
  • Honda Motor Co Ltd (NYSE: HMC): up 0.4 percent.
  • Tesla Inc (NASDAQ: TSLA): down 0.6 percent.

What's Next

Reports of the White House looking to delay auto tariffs helped lift broader indices, in part due to the credibility of the sources. The sources close to the matter include an individual briefed on the talks, an administration official and two foreign officials.

U.S. automakers opposed the tariff and said in a prior statement it would be a "mistake, with significant negative consequences." The sector may be on the winning side of the argument.

Related Links:

Trump Threatens European Auto Tariffs, But May Have Himself To Blame For Record Trade Deficit

China's Foreign Ministry Responds To US Tariffs

Posted-In: auto imports CNBC Donald TrumpGovernment News Regulations Rumors Media Best of Benzinga

 

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