Key Takeaways
- Shares of GM, Ford, and Stellantis gained Wednesday as Commerce Secretary Howard Lutnick suggested the automakers may get relief from new tariffs on Canada and Mexico.
- Lutnick said in an interview that President Trump is considering easing some the duties on certain sectors, and the auto industry may be one of them.
- President Trump also said in a speech to a joint session of Congress that he would like to make car loans tax deductible for those who buy American-made vehicles.
Shares of General Motors (GM), Ford Motor (F), and Chrysler parent Stellantis (STLA) advanced Wednesday as Commerce Secretary Howard Lutnick said President Trump was going to announce today changes to tariffs he slapped on Canada and Mexico this week.
President Trump also floated the idea of giving tax breaks to buyers of U.S.-manufactured cars Tuesday night in his address to a joint session of Congress.
Lutnick told Bloomberg Television that Trump may be giving some tariff relief to certian sectors, saying, “It could well be autos, it could be others as well.”
The Commerce Secretary noted that the administration will consider lowering duties on companies that comply with the regulations of the USMCA trade agreement negotiated with Canada and Mexico in Trump’s first term. Lutnick added that all of the “Big Three” automakers are compliant with that deal.
Also helping lift carmaker shares was a comment Trump made in last night’s address to Congress, when he said, “I also want to make interest payments on car loans tax deductible—but only if the car is made in America.”
Even with today’s gains for the “Big Three” ranging from about 4% to 7%, only General Motors shares are trading in positive territory for the past year.
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