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Shares of the global automaker rose Tuesday after Donald Trump signaled that there was “help” in the industry as he climbed from the sudden tariffs he imposed on imported cars.
“I’m looking at something to help some auto companies,” Trump said Monday in Washington, adding that he “needs a bit more time” before starting to make parts in the US, not in countries like Canada or Mexico. The Japanese group is Mexico’s largest car producer.
Stocks of Toyota, Honda and Tata Motors rose 4.8%, 4% and 4.5% respectively on Tuesday, following Trump’s comments.
The statement marks the US President’s latest climb from the cleaning fees released on April 2nd. On Friday, the administration exempted Chinese smartphone imports from the 125% Levy announced last week.
Trump’s tariff threat has plunged stocks in some automakers and cast a highly globalized supply chain that has led to uncertainty in the industry.
Stocks of Toyota, the world’s largest automobile company by sales, fell 23.4% this year, compared to a 10.6% decline in Japan’s Topix benchmark.
When asked about the additional tariff credit, Trump said: “I’m a very flexible person. I won’t change my mind, but I’m flexible.”
