By Katherine Hamilton
Auto stocks opened down as car companies are still facing tariffs despite a 90-day pause in some import duties.
Stellantis shares opened down 9% at $9.23 on Thursday morning, while GM was down 4% to $43.76 and Ford fell 3% to $9.18.
The morning moves were a reverse from yesterday. Auto shares rose Wednesday after President Trump posted on social media that he authorized a 90-day pause and lowered reciprocal tariffs to 10%. But Treasury Secretary Scott Bessent clarified later that afternoon the pause and reduction doesn't include sector-based tariffs, including those on the auto industry.
That means imported cars and certain auto parts are still facing a 25% tariff, which the White House imposed in March. Related sectors such as aluminum and steel are also still set to be taxed 25%. There are also now 125% tariffs on Chinese imports, Trump said Wednesday.
The tariff pause could relieve some larger scale uncertainty that analysts were worried would drive down discretionary spending on things like cars. But costs for automakers will still likely be higher from the import duty. Bank of America analysts have estimated the tariff could translate to a $10,000 hike in the average price of an imported vehicle.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
April 10, 2025 10:04 ET (14:04 GMT)
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