Shares of Ford Motor Co (NYSE:F), General Motors Co (NYSE:GM) and Stellantis N.V. (NYSE:STLA) spiked in Wednesday’s after-hours session before pulling back. Here’s a look at what’s going on.
What Happened: According to a Financial Times report, President Donald Trump is expected to relax tariffs on automakers following “intense” lobbying from industry executives in recent weeks.
The report, which cites two people with knowledge of the matter, indicates Trump could exempt car parts, steel and aluminum from tariffs imposed on imports from China.
Automakers will reportedly still face 25% duties on all imports of foreign-made cars, as well as separate 25% tariffs on parts set to go into effect on May 3.
The news comes after various executives from the auto industry raised concerns that tariffs would drive up vehicle prices, force job losses and impact supply chains.
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Stellantis chair John Elkann reportedly warned last week that the automobile industry was being “put at risk” due to the Trump administration’s trade policies. Another executive in the space reportedly said that tariffs were jeopardizing the health of the entire industry.
Trump slapped sweeping reciprocal tariffs on a slew of nations at the beginning of the month, before announcing a 90-day pause for most countries. Trade partners still face 10% baseline tariffs during the 90-day pause period.
Shares of Ford, GM and Stellantis all jumped in extended trading Wednesday before pulling back. Ford traded up to around $10, but was down 0.36% after hours, trading at $9.73 at last check.
GM shares traded up to around the $48.40 level, but were down 0.70% after the close, trading at $45.50 at the time of publication. Stellantis was the only automaker holding onto gains, last up 0.95% after hours, trading at $9.01. Stellantis traded as high as $9.30 in after-hours trading Wednesday, according to Benzinga Pro.
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