General Motors (GM) stock soared 6.60% in intraday trading on Wednesday, outperforming the broader market despite ongoing trade war tensions between the United States and China. The unexpected rally comes as investors reassess the impact of tariffs on the auto industry and GM's positioning in the market.

The surge in GM's stock price occurs against a backdrop of escalating trade tensions. China recently announced it would raise tariffs on US goods to 84% in retaliation to President Trump's imposition of a 104% tariff on Chinese imports. Despite these headwinds, GM appears to be benefiting from its relatively lower exposure to imports compared to some competitors. According to recent data, GM imports about 45% of the cars it sells in the US, mainly from Mexico and Canada, which is less than some of its peers.

Analysts suggest that GM's strong domestic manufacturing presence may be providing a buffer against the worst effects of the tariff war. Additionally, the company's recent moves to increase output at its Fort Wayne facility and its diversification efforts, such as the "Durant Guild" import unit delivering US-built products to China, may be contributing to investor optimism. However, the auto industry as a whole remains under pressure, with concerns about potential declines in US and Canada auto sales if the global trade war escalates further.