Tesla (NASDAQ:TSLA) helped spark a rally across the electric vehicle sector Wednesday after President Donald Trump announced a temporary 90-day reduction in tariffs for most U.S. trade partners. The decision lowers tariffs on imports to 10%, giving time for further trade talks and lifting market sentiment.

While the new policy excludes China which now faces an increased U.S. tariff rate of 125% investors appeared optimistic that negotiations between the U.S. and China could resume. A resolution would be particularly significant for EV companies, many of which rely heavily on components and supply chains linked to China.

Tesla shares jumped more than 20% on the day, recovering ground lost earlier this month. Trading volume was notably elevated following the White House announcement.

Several other EV names also gained on the news. Among them: Polestar Automotive (NASDAQ:PSNY), Lucid Group (NASDAQ:LCID), Rivian Automotive (NASDAQ:RIVN), VinFast Auto (NASDAQ:VFS), Lotus Technology (NASDAQ:LOT), Li Auto (NASDAQ:LI), XPeng (NYSE:XPEV), NIO (NYSE:NIO), and ZEEKR Intelligent (NYSE:ZK) all moved higher, though most remain down for the year.

EV suppliers also saw strength. Stoneridge (NYSE:SRI), REE Automotive (NASDAQ:REE), QuantumScape (NYSE:QS), and Hyliion Holdings (HYLN) were among the notable gainers. The relief rally offered a brief reprieve for a sector that has struggled in recent months under regulatory and macroeconomic pressure.