The president recently implemented 25 percent tariffs on automobiles manufactured outside the United States.
Shares of automakers surged by more than 3 percent after President Donald Trump hinted he could offer “help” to car companies.
Speaking to reporters from the White House on April 14, the president said he may assist automakers in making the tariff-driven transition from Canada, Mexico, and other foreign markets.
“I’m looking at something to help some of the car companies where they’re switching to parts that were made in Canada, Mexico, and other places,” Trump said alongside Salvadoran President Nayib Bukele.
U.S. automakers may require additional time to adjust when they start producing more vehicles and car parts in the United States, he added.
Shares of General Motors and Ford rallied more than 3 percent on the news. Chrysler parent Stellantis climbed by nearly 3 percent. Tesla Motors slumped by 2 percent.
The president recently implemented 25 percent tariffs on automobiles manufactured outside the United States. Import duties on foreign car parts will go into effect next month.
Analysis published by the Center for Automotive Research found that the 25 percent auto tariffs will increase U.S. automakers’ costs by about $108 billion. The Detroit Three—Ford, General Motors, and Stellantis—could incur an extra nearly $5,000 for imported parts and more than $8,000 for every vehicle they import.
Before tariffs went into effect this month, industry data showed heightened demand and steady prices. According to the March Kelley Blue Book Report, prices were little changed month over month and year over year, but sales surged by nearly 30 percent from February.
Meanwhile, when asked if he would extend help to Apple products and other technology items, Trump said he is a “very flexible person.”
“I don’t change my mind, but I’m flexible, and you have to be,” the president said. “You just can’t have a wall, and sometimes you have to go around it, under it, or above it.”
Trump noted that some ideas could arise when he speaks with Apple CEO Tim Cook.
Apple shares remained up 2 percent during the trading session.
By Andrew Moran
