The shares in major cars manufacturers all over the world rose on Monday after President Trump indicated that he may provide temporary exemptions for the new sharp tariffs imposed on vehicles and imported parts.
Speaking to reporters, Trump said he was “looking at something to help car companies,” noting that manufacturers needed “little time” to transfer production to the United States. Although he did not give any details about the exceptions of the product that could be provided, or for how long, the notes were sufficient to raise the investor's confidence across the auto sector.
The President's comments come a few weeks after his administration announced a 25 percent tariff on the fully imported vehicles, which entered into force on April 3, with duties expected on imported auto parts to follow by May 3. Trump initially insisted that the measures would be permanent, with no points for foreign producers.
In Japan, the stocks in Toyota increased by 3.7 percent, while Honda increased by 3.6 percent. European car makers also enjoyed an increase: Stelantis increased by 5.6 percent to 8.26 euros, and Volkswagen by 3.3 percent to 90.26 euros, and Mercedes -Benz added 2.9 percent, up to 50.70 euros. The French auto supplier rose 4.3 percent.
In the UK, the luxury car maker Aston Martin Lagunda rose to the FTSE 250 summit, with 68¾P or 4.9 percent in morning trading. The company, which is not manufactured in the United States but it considers America as approximately a third of the sales market, has announced plans to collect 125 million pounds to help move in the impact of definitions.
The SMMT and SMT Association has warned that the American tariff system poses a serious threat to auto exports in Britain. The United States is the second largest export market for the UK cars, which represents 16.9 percent of vehicle exports last year-100,000 vehicles.
In response to uncertainty, Jaguar Land Rover stopped earlier this month to all US -related shipments for at least four weeks as it re -evaluated its strategy under the new commercial conditions.
Although Trump's statements have stopped confirming any formal transformation in politics, the markets have interpreted them as softening the extremist situation previously. Any delay or exemption can provide a decisive window for manufacturers to control supply chains and production planning amid high geopolitical and commercial tension.
Industry leaders and investors will now closely monitor more details about any proposed exceptions as the deadline for photographing car parts is approaching.