President Donald Trump has signed an executive order to ease the impact of newly imposed 25% tariffs on imported vehicles by offering exemptions and reimbursements on steel and aluminum used in car manufacturing. This move aims to support domestic auto production and job creation, encouraging foreign automakers to build cars in the U.S.
The policy rollback, applied retroactively, allows automakers to receive refunds on past payments and provides time to adjust supply chains to boost domestic manufacturing. New tariffs originally set to begin on May 3 for imported auto parts will also be adjusted, with reimbursements of up to 3.75% of the vehicle’s value in the first year, reducing to 2.5% in the second year.
Automakers like General Motors have responded positively to the relief measures. GM reported strong first-quarter earnings for 2025, posting $2.78 billion in profit, or $3.35 per share, surpassing Wall Street expectations. However, the company announced it will reassess its full-year guidance due to potential changes in auto tariffs.
Investors are also closely monitoring upcoming tech earnings reports from major companies such as Apple, Meta Platforms, Microsoft, and Amazon. These reports are expected to provide insights into the tech sector’s performance amid ongoing trade tensions and economic uncertainties.
Additionally, market participants await key U.S. economic data releases, including the Personal Consumption Expenditures (PCE) price index, which could influence Federal Reserve policy decisions and impact investor sentiment.
