The stock market jumped on Wednesday after Trump’s administration gave one month’s release from the tariff charged the day before.
Dow Jones Industrial Average closes trading sessions up nearly 500 points, or 1.1%, while s& P 500 also jumped 1.1%. Nasdaq heavy technology increased by almost 1.5% on Wednesday.
Press Secretary Karoline Leavitt said President Donald Trump had ordered delays in car tariffs after requests from 3 large US cars: Ford, General Motors and Stellantis, Gares of Jeep and Chrysler.
“The president gave them an exception for one month so they were not in an unfavorable position,” Leavitt said during a press conference at the White House.
The shares of car makers soared after the announcement. Ford’s stock prices ended the trading day up almost 6%, while General Motors rose more than 7%. Stellantis jumped more than 9% on Wednesday.
The tariff is expected to cause challenges for US car makers, many of which depend on supply chains that are closely related to Mexico and Canada.
The American Automotive Policy Council, or AAPC, a trading group representing 3 large US cars, praised the release of one month tariff.
“Ford’s American car makers, GM and Stellantis praised President Trump for acknowledging that vehicles and parts that meet the requirements of USMCA’s high US and regional content must be released from this tariff,” AAPC President Matt Blunt told ABC News in a statement.
“We hope to work with President Trump and his government about our common goal to increase US automotive production and expand exports to markets throughout the world,” Blunt added.
When alleviating several tariffs, Trump criticized Canada on Wednesday for what he described as a failure to take the steps needed for the United States to attract all the tariffs charged the day before.
Trump said he was holding a telephone with Canadian Prime Minister Justin Trudeau on Wednesday where the two leaders discussed the path to withdrawing US tariffs. Such results will require sufficient action by Canada to overcome the drug trafficking, Trump told Trudeau.
A week ago, Trump accused that drugs such as Fentanyl continued to enter the US through Mexico and Canada even though there was a agreement last month to overcome this problem.
In a post on Social truth On Wednesday, Trump said “no one convinced me” that the Fentanyl flow to the US had stopped.
“[Trudeau] said that it was better, but I said, ‘That’s not good enough.’ The call ends in a ‘rather friendly’ way! “Trump said.
Since September, almost all Fentanyl confiscated by the US came through the southern border with Mexico, according to US customs and border patrols, or CBP, a federal agent. Less than 1% of Fentanyl was confiscated on the northern border with Canada, CBP was found.
President Donald Trump spoke in the Roosevelt of the White House in Washington, DC, on March 3, 2025.
Roberto Schmidt/AFP Via Getty Images
Canadian Prime Minister Justin Trudeau sharply criticized the tariff on Tuesday, calling them “stupid” policies that did not “make sense.”
The reasons for tariffs are based on false accusations about Canada as the main source of drugs entering the US, Trudeau added.
Continuous tension between the US and Canada emerged after China issued a warning on Tuesday night that they were ready for each “type of war” with the United States after the tariff charged by the Trump government.
The US slapped 25% of goods tariffs from Mexico and Canada, as well as 10% of import tariffs from China. New Rounds for Chinese goods duplicated the initial tariff set placed in China last month.
A spokesman for the Chinese Foreign Ministry said the tariff will not lead to US resolution about Fentanyl originating from China.
“If the US really wants to solve the Fentanyl problem, then the right thing to do is to consult with China based on equality, mutual respect and mutual benefit to overcome problems with each other,” Chinese spokesman Lin Jian said at a press conference on Tuesday night.
“If the US has another agenda in mind and if war is what the US wants, be it tariff war, trade war or other types of war, we are ready to fight until the end,” the spokesman added.
The comment came immediately after Trump’s administration imposed 25% of goods tariffs from Mexico and Canada, as well as 10% of import tariffs from China. New Rounds for Chinese goods duplicated the initial tariff set placed in China last month.
Within a few minutes after the new US tariff began to take effect, China launched on Tuesday’s initial response by placing an additional 10% to 15% tariffs on imported US goods, such as chicken, wheat, soybeans and beef.
“The rate of retaliation applied by China is very specific and is directly targeted to American farmers, who are mostly in red countries and most of them chose Trump,” Neil Thomas, a Chinese political partner at the Center for Analysis of the Asian Community Policy Institute, ABC News.
“So China is trying to create pain where it is important for Trump, and hopes to bring Trump to the negotiation table and offer help to this Trump support group,” added Thomas.
This new task will be placed above similar tariffs charged by China during the first Trump administrative trade war in 2018. Several tariffs have been 25%, although Beijing issued several relief as a result of the trade agreement “Phase One” 2020.
China tariffs that have just come into force for goods sent March 10.
In a series of social media posts last month, Trump said he would place tariffs in Canada, Mexico and China to host the manufacture and transportation of illegal drugs that ended in the US
During the speech for the Congress Congress session on Tuesday night, Trump also sharply criticized the tariffs charged by the Chinese government on US goods.
“President Trump continues to show his commitment to ensure US trade policies serve national interests,” said the White House in statement on Tuesday.
Trade Secretary Howard Lutnick said on Tuesday afternoon that Trump might immediately offer a road and Mexico to help from the tariff placed on several items covered by the North American free trade agreement.
Lutnick did not mention the potential for compromise with China.
ABC News’ Selina Wang, Kevin Shalvey, Karson Yiu and Ellie Kaufman contributed to this report.