The stock market surged on Wednesday afternoon after the Trump administration granted automakers a one-month exemption from tariffs imposed a day earlier.
The Dow Jones Industrial Average climbed about 550 points, or 1.3%; while the S&P 500 jumped 1.25%. The tech-heavy Nasdaq increased 1.5% on Wednesday.
Press Secretary Karoline Leavitt said President Donald Trump had ordered the delay of auto tariffs after a request from the Big 3 U.S. automakers: Ford, General Motors and Stellantis, the parent company of Jeep and Chrysler.
“The president is giving them an exemption for one month so they’re not at an economic disadvantage,” Leavitt said during a press conference at the White House.
The tariffs are expected to pose a challenge for U.S. automakers, many of which depend on a supply chain closely intertwined with Mexico and Canada.
While easing some tariffs, Trump criticized Canada on Wednesday for what he described as failure to take the steps necessary for the United States to withdraw all of the tariffs imposed a day earlier.
