Detroit Auto Stocks Rise on Talk of Tariff Relief for U.S. Vehicles

Shares of major U.S. automakers climbed on Friday following reports that President Donald Trump is considering major tariff relief measures for vehicles produced in the United States.

According to Reuters, the plan could significantly cut costs for carmakers by easing or removing parts of the 25% tariff currently applied to imported vehicles and components. The proposal may also include extending a 3.75% tariff offset for five years and adding relief for U.S.-made engines.

The news sent stocks for General Motors, Ford Motor, and Stellantis higher in afternoon trading. Ford closed at a 52-week high of $12.67, up 3.7%, while Stellantis gained 3.2% to $10.73. GM rose 1.3% to $60.13 per share.

Republican Senator Bernie Moreno of Ohio told Reuters the move signals strong government support for companies manufacturing domestically. “If you have final assembly in the U.S., we’re going to reward you,” he said, noting that Ford, Toyota, Honda, Tesla, and GM would all benefit from the proposed changes.

Tesla’s stock, however, slipped 1.4% to $429.83, while shares of other automakers with U.S. operations, including Honda and Toyota, also saw modest gains.

Automakers have long sought relief from tariffs that have added billions in extra costs since their introduction. Ford previously estimated about $3 billion in tariff-related expenses this year, while GM expected up to $5 billion, though both said some of the impact could be mitigated.

The potential changes could help boost the competitiveness of U.S.-assembled vehicles as the industry faces high costs and slowing global demand.