After electronics, the windfall is now shifting to autos. Shares of major automakers rose on April 14, 2025 after President Donald Trump signaled potential relief for car companies impacted by the recent 25% tariffs on imported vehicles (read: Rally in Apple ETFs in the Cards?).

Speaking alongside Salvadoran President Nayib Bukele in the Oval Office, Trump stated he is looking to “help some of the car companies” who are adjusting their supply chains, as quoted on CNBC.

Trump: Automakers "Need a Little Bit of Time"

During the meeting, Trump acknowledged the challenges automakers are facing due to the tariffs, noting that companies are transitioning production from international suppliers to U.S.-based operations.

Although Trump did not provide specific details, the markets responded positively to the remarks. The auto-based exchange-traded fund (ETF) First Trust S-Network Future Vehicles & Technology ETF CARZ added 1.6% on April 14, 2025. The fund advanced 1.6% after hours.

Shares of Major U.S. Automakers See a Boost

Following Trump’s comments, shares of Ford Motor F, General Motors GM, and Stellantis STLA jumped between 3% and 6%. Electric vehicle maker Rivian Automotive RIVN also saw a notable increase, closing up 4.9%. Tesla’s shares, however, remained unchanged.

Other car manufacturers saw modest gains as well. Toyota Motor TM, Honda Motor HMC, and EV startup Lucid Group
LCID closed April 14 up between 1.5% and 2%.

The positive stock movement comes nearly two weeks after Trump imposed 25% tariffs on imported vehicles on April 3. While the administration has since rolled back some levies and granted exemptions to certain tech companies, the auto tariffs have remained in place.

Boston Consulting Group expected auto tariffs to add $110 billion to $160 billion on an annual run rate basis in costs to the industry, which could impact 20% of U.S. new-vehicle market revenues, as quoted on CNBC.

Automakers Respond to Tariffs in Various Ways

Companies have taken different approaches to navigate the tariffs. Domestic-focused automakers like Ford and Stellantis introduced temporary employee pricing deals to boost demand. Meanwhile, Jaguar Land Rover halted U.S. shipments, and Hyundai announced a two-month freeze on price hikes to ease consumer worries.

General Motors has been ramping up domestic production in response. The company increased output at its Indiana truck plant and reversed plans for downtime at its Tennessee facility, which manufactures Cadillac crossovers.

ETFs to Gain

If Trump offers any form of relief to automakers, ETFs like CARZ and the Max Auto Industry 3X Leveraged ETN CARU should see price gains in the near term.

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Ford Motor Company (F) : Free Stock Analysis Report

Toyota Motor Corporation (TM) : Free Stock Analysis Report

Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report

General Motors Company (GM) : Free Stock Analysis Report

First Trust S-Network Future Vehicles & Technology ETF (CARZ): ETF Research Reports

Stellantis N.V. (STLA) : Free Stock Analysis Report

Lucid Group, Inc. (LCID) : Free Stock Analysis Report

Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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