Ford Motor Co's stock soared 5.04% in the pre-market trading session on Wednesday, March 5th, following reports that the Trump administration is considering a one-month delay in implementing the 25% tariffs on auto imports from Canada and Mexico.
The potential temporary reprieve comes after President Trump held discussions with executives from Ford, General Motors, and Stellantis on Tuesday, as the auto industry has been strongly opposing the tariffs. The companies have warned that the tariffs could significantly disrupt their supply chains, increase manufacturing costs, and lead to higher vehicle prices, ultimately hurting profits and job prospects in the sector.
According to reports, the Trump administration is weighing the possibility of exempting certain sectors, including the auto industry, from the tariffs if they comply with existing rules under the United States-Mexico-Canada Agreement (USMCA). This move could provide the automakers with additional time to make adjustments and shift more production and investment to the US, a key demand from President Trump.
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