Auto Stocks Rally After Trump Says He’s Considering Giving Help to Automakers

The president recently implemented 25 percent tariffs on automobiles manufactured outside the United States.

Traders work on the floor of the New York Stock Exchange during morning trading in New York on April 14, 2025. Adam Gray/Getty Images

Shares of automakers surged by more than 3 percent after President Donald Trump hinted that 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 noted.

Share prices of General Motors (GM) and Ford (F) rallied by more than 3 percent upon the news. The share price of Chrysler parent Stellantis (STLA) climbed by nearly 3 percent. The price of Tesla (TSLA) shares 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 in May.

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 Big Three—Ford, General Motors, and Stellantis—could incur extra costs of 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 had 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 ... 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.

The Apple (AAPL) share price remained up 2 percent during the trading session.

Navigating Through the Noise

Tariff exemptions on smartphones, hard drives, laptops, and other electronics were announced on April 14.

The Trump administration said the reprieve will be short-lived.

In an April 13 Truth Social post, Trump stated that “nobody is getting ‘off the hook’” through exemptions. Instead, the trade measures will be transferred to “a different tariff ‘bucket,’” he said.

“We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations,” he wrote.

Commerce Secretary Howard Lutnick confirmed to ABC’s “This Week” that the exemptions will be temporary, lasting only until another batch of levies is introduced.

Commerce Secretary Howard Lutnick speaks to reporters at the White House on April 9, 2025. Travis Gillmore/The Epoch Times

“They’re exempt from the reciprocal tariffs, but they’re included in the semiconductor tariffs, which are coming in probably a month or two,” Lutnick said.

Trump and senior administration officials have touted the trade agenda as an initiative to restore domestic manufacturing and ensure that the United States manufactures automobiles, semiconductors, and other products.

Others are skeptical that this goal can be achieved.

Janet Yellen, former Treasury secretary and Federal Reserve chair, described the president’s tariff campaign as a “huge self-inflicted wound” and said that returning manufacturing to the United States is “a pipe dream.”

“I don’t understand the rationale for the tariffs,” she said in an interview with CNBC’s “Squawk Box” on April 14. “If what you’re trying to do is reduce the trade deficit, imposing tariffs is not going to be successful and is not the way to go about doing that.”

Artificial intelligence (AI) chipmaking titan Nvidia announced on April 14 that it will manufacture up to $500 billion of AI chips and supercomputers in the United States over the next four years.

“Adding American manufacturing helps us better meet the incredible and growing demand for AI chips and supercomputers, strengthens our supply chain and boosts our resiliency,” Jensen Huang, founder and CEO of Nvidia, said in a statement.

Trump told reporters that Nvidia is doing this “because of a thing called tariffs” and said that he is “honored” by the decision.

“Nvidia is one of the greatest companies of the world, modern, super modern,” the president said.

The recent announcement builds on the growing list of U.S. and foreign tech juggernauts pledging billions of dollars in new manufacturing initiatives.