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CNN
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US stocks rose Wednesday after the Trump administration announced it would grant a one-month exemption for tariffs on Canada and Mexico that affect automakers.
US stocks, which had teetered during the day, surged higher after the White House confirmed the one-month exemption. The Dow jumped 570 points, or 1.3%. The broader S&P 500 rose 1.2% and the Nasdaq Composite gained 1.4%.
“We spoke with the Big Three auto dealers. We are going to give a one-month exemption on any autos coming through USMCA,” Trump said in a statement read by White House Press Secretary Karoline Leavitt in a press briefing. Those dealers included Stellantis, Ford and General Motors.
Shares in General Motors (GM) rose 7.8%. Shares in Stellantis (STLA) rose 9.3% and shares in Ford (F) gained 5.7%.
The announcement of a one-month reprieve for tariffs on automakers is welcome news for investors who are looking for signs that the Trump administration might further negotiate or roll back its tariff policies.
A worker inspects aluminum parts at an auto parts manufacturer in San Luis Potosi, San Luis Potosi state, Mexico, on Monday, February 17, 2025.
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The afternoon rally is a rebound in the stock market after it took a beating to start the week. The Dow tumbled a whopping 1,300 points across Monday and Tuesday, largely driven by Trump’s enactment of tariffs — and the subsequent retaliation from trading partners. The broader S&P 500 on Tuesday erased its gains since Trump’s reelection in November.
The rebound in markets on Wednesday recoups some of the week’s earlier losses, but the S&P 500 is still off of its previous record high, reached just two weeks ago.
Kevin Gordon, a senior investment strategist at Charles Schwab, said the back and forth with tariffs has created a fog of uncertainty for investors, businesses and consumers.
“Uncertainty is the policy at this point,” Gordon said.
CNN’s Elisabeth Buchwald contributed reporting.
