Shares of General Motors are up 5% and Ford up 1.7% in the pre-market.
Reports from late yesterday and Lutnick’s comments hint at some kind of carve-out for automakers.
Reuters reported:
“Two sources familiar with discussions between the Trump administration
and Canadian and Mexican officials said the talks are aimed at
exemptions for companies that comply with the 2020 U.S.-Mexico-Canada
Agreement’s rules of origin, largely – but not exclusively – aimed at
automakers.”
The report said it might only be a 30-day exemption but automakers would have to demonstrate plans to invest more in US production but that the process is ‘far from agreed’.
The risk here is that only autos are exempted and the pain remains elsewhere (though energy tariffs are also likely to be removed). S&P 500 futures have given up all their gains and are trading flat.
The latest reports say Trump will announce changes “this afternoon”.
