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Shares of global carmakers rose on Tuesday after Donald Trump signalled there would be “help” for the industry, in a climbdown from the steep tariffs he imposed on imported cars.
“I’m looking at something to help some of the car companies,” Trump said on Monday in Washington, adding they “need a little bit of time” before they can start making parts in the US rather than in countries such as Canada and Mexico. Japanese groups are the largest car producers in Mexico.
Shares in Toyota, Honda and Tata Motors rose 4.8 per cent, 4 per cent and 4.5 per cent, respectively, on Tuesday following Trump’s comments.
The statement marks the latest climbdown for the US president from the sweeping tariffs he unveiled on April 2. On Friday, the administration exempted Chinese smartphone imports from the 125 per cent levy announced last week.
Trump’s tariff threats have decimated the shares of some carmakers and thrown the highly globalised supply chains that underpin the industry into uncertainty.
Shares in Toyota, the world’s largest car company by sales, are down 23.4 per cent this year compared with a 10.6 per cent decline in Japan’s Topix benchmark.
When asked about additional tariff reprieves, Trump said: “I’m a very flexible person. I don’t change my mind, but I’m flexible.”
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