Stocks rallied on Wednesday as investors welcomed President Trump’s one-month delay of tariffs on car imports, and signs that his administration may further ease its levies on some goods from Canada and Mexico.
The S&P 500 jumped about 1.2 percent, after two days of declines. The technology-heavy Nasdaq Composite index also ticked up, roughly 1.4 percent, after falling this week. Mr. Trump’s new tariffs on Canada, Mexico and China, which took effect on Tuesday, had dragged down global stock markets, reflecting investors’ concern that the sweeping tariffs could hurt corporate profits and accelerate inflation.
Mr. Trump said on Wednesday that he would pause tariffs on cars coming into the United States from Canada and Mexico for one month, while keeping in place a 25 percent tariff on most other imports.
News of the delayed tariffs for carmakers sent shares of major U.S. auto companies higher. Stellantis’s stock rose roughly 9.1 percent, while General Motors was up 7.4 percent and Ford Motor 5.7 percent. Many carmakers rely on factories and suppliers in Canada and Mexico for cars and the parts used to make them, and shifting production to the United States isn’t quick or easy.
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