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U.S. President Donald Trump met with El Salvador’s President Nayib Bukele in the Oval Office on April 14, 2025, where discussions about the automotive industry took precedence.
During this meeting, Trump expressed his intention to support American automakers, stating that they require “a little bit of time” to transition production back to the U.S. He remarked, “I’m looking for something to help some of the car companies, where they’re switching to parts that were made in Canada, Mexico, and other places.” The President acknowledged that these companies are working towards localizing their supply chains, which may necessitate some additional time for adaptation.
Following Trump’s remarks, stocks of major automakers saw a significant uptick. Companies like Ford Motor, General Motors, and Stellantis, the parent company of Chrysler, experienced increases in their stock prices, ranging from 1% to 4%. Conversely, Rivian Automotive shares climbed by 3%, while Tesla faced a minor decline of approximately 2%. Other car manufacturers, including Toyota and Honda, also saw their shares rise by less than 2% during midday trading.
This conversation on automotive support comes on the heels of Trump’s recent implementation of a 25% tariff on imported vehicles, which took effect on April 3. While he has made moves to lower tariffs for various countries and provided exemptions for tech companies like Apple, the automotive tariffs have so far remained intact.
Automakers have reacted to the ongoing tariff landscape in various ways. Domestic entities like Ford and Stellantis have initiated temporary promotions involving employee pricing, whereas international manufacturers, such as Jaguar Land Rover, have halted shipments to the U.S. In a bid to alleviate customer anxieties, Hyundai Motor announced that it would not increase prices for a minimum of two months.
Key Insights and Implications for the Automotive Sector
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