U.S. carmakers gain ground on tariff relief report 

Published 16/10/2025, 22:54
© Reuters

Investing.com -- Shares of major U.S. automakers edged higher in after-hours trading Thursday amid signs that the Trump administration is nearing a decision to ease tariff pressures on the industry. General Motors Company (NYSE:GM) rose 1.2%, while Stellantis NV (NYSE:STLA) gained 0.2% after Bloomberg reported that the Commerce Department is preparing to extend a key trade provision for car manufacturers.

According to Bloomberg, citing people familiar with the matter, the White House is expected to announce a five-year extension of an arrangement that allows automakers to reduce tariff payments on imported parts. The program, originally slated to expire after two years, has been the focus of intensive industry lobbying aimed at offsetting costs incurred under the trade policies of the Trump administration.

The pending policy shift follows months of advocacy from Detroit’s biggest names, including Ford Motor Co. and GM, which have faced elevated production costs due to steep tariffs on imported vehicles, parts, and raw materials like steel and aluminum. The extension would represent a significant reprieve for U.S. carmakers working to shore up margins amid ongoing supply chain disruptions.

An announcement could come as early as Friday, the people said, though similar policy developments have faced delays in the past. The expected update will reportedly appear in government documents that will also finalize separate tariffs on imported trucks, preserving some protectionist elements even as auto-sector relief moves forward.

For investors, the prospect of sustained tariff relief could provide a near-term tailwind for automaker equities that have been rangebound amid mixed demand signals and lingering inflationary risks. 

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