Al Root

Tariff news continues to come fast, so investors have to stay nimble.

A notice in the Federal Register said that on Tuesday, the "Secretary of Commerce initiated an investigation to determine the effects on the national security of imports of medium-duty trucks, heavy-duty trucks, and medium- and heavy-duty truck parts, and their derivative products."

That opens the door for sectoral tariffs, similar to the existing 25% levy on all new light vehicles, the cars regular Americans buy. Those car tariffs excluded medium and heavy-duty trucks, but it looks as if that might change.

The White House didn't immediately respond to a request for comment.

Paccar and Cummins shares could be affected. Paccar stock rose 0.6% on Wednesday, while Cummins stock gained 1.6%. The S&P 500 and Dow Jones Industrial Average rose 1.7% and 1.1%, respectively, helped by comments from Treasury Secretary Scott Bessent that indicated the U.S. would seek to de-escalate the trade war with China.

Paccar and Cummins didn't immediately respond to requests for comment.

While the new notice might cause concern for investors, there was some potentially positive news about tariffs. The Financial Times reported that President Donald Trump was considering giving some tariff relief to domestic auto makers. What the relief would be wasn't immediately clear.

Ford Motor and General Motors shares gained 1.4% and 1.5% on Wednesday. Both were flat in after hours trading.

Neither company immediately responded to a request for comment.

Whatever happens in the coming hours, investors should brace for tariff news to moves stocks on Thursday. Through Wednesday trading, Ford and GM shares were down 8% and 15%, respectively, since the Nov. 5 election. Paccar and Cummins shares had fallen 6% and 20%, respectively.

Write to Al Root at allen.root@dowjones.com

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April 23, 2025 17:26 ET (21:26 GMT)

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