General Motors (GM) and Tesla (TSLA) are among the automakers rising today after Bloomberg reported that the Trump administration could exempt automakers from tariffs on Mexican and Canadian tariffs for one month.

GM and TSLA are climbing 5% and 1%, respectively, in the wake of the news.

A lithium battery recharging a fleet of electric vehicles in a parking lot.

More About the Possible Postponement

Members of the administration discussed the potential delay yesterday, multiple unnamed sources told Bloomberg. Commerce Secretary Howard Lutnick said that relief from tariffs for automakers could be unveiled today.

During the potential postponement, the administration expects the automakers to develop plans to carry out more of their spending and manufacturing within the U.S.

The Possible Impact of Tariffs on GM and Tesla

GM has major plants in Mexico and would likely have to raise the prices of its vehicles significantly if it becomes subject to the Trump administration's tariffs.

Tesla has two large factories in the U.S., and EVs made in those factories will not be subject to tariffs. But the company's CFO noted in January that "we are still very reliant on parts from across the world for all our businesses."

Moreover, TSLA has a battery equipment plant in Ontario, Canada, and the country has imposed 25% tariffs on all EVs made in America. Some leading figures in Canada are talking about imposing a 100% tariff on Teslas.

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Disclosure: None. This article is originally published at Insider Monkey.