Shares of General Motors (NYSE:GM) and Ford Motor (NYSE:F) jumped 4% and 3%, respectively, after reports that the Trump administration will exclude car parts imported from China from certain steel, aluminum, and fentanyl-related tariffs—offering much-needed relief to automakers scrambling to manage rising costs.

Tariff Exemption Details

Covered Goods: Car parts sourced from China will be exempt from additional duties on steel, aluminum, and other imports tied to anti-fentanyl measures.

Remaining Tariff: A 25% levy on fully assembled foreign-made vehicles stays in place.

Purpose: Shields U.S. assembly lines from spiking component costs and supply?chain disruptions.

Immediate Market Reaction

Stock Moves:

General Motors (GM): +4%

Ford Motor (F): +3%

Sector Lift: Suppliers and aftermarket names with China-sourced parts also saw gains.

Industry Impact

Cost Savings: Exemptions reduce input expenses for engines, electronics, and structural components.

Supply-Chain Stability: Less need to front-load inventories or reroute production.

Competitive Edge: Helps U.S. brands maintain price competitiveness against European and Asian rivals facing full tariffs.

What’s Next

Formal Guidance: Await USTR confirmation on the exemption’s scope and duration.

Q2 Earnings: Watch automakers’ upcoming reports for updated cost and margin outlooks.

Trade Negotiations: Any further carve-outs or retaliatory moves from China could reshape the relief’s longevity.

See Today’s Top Gainers
To view a full list of the day’s biggest stock movers—including GM, Ford, and other automotive plays—use the? Market Biggest Gainers – Market Overview APIfrom Financial Modeling Prep.