Trump grants one-month tariff relief to some automakers

In a move that sent auto stocks soaring, President Donald Trump announced a one-month exemption from his 25% tariffs on Canadian and Mexican vehicles, provided they comply with North American free trade rules (via Reuters).

The decision, which comes amid ongoing trade battles, offers a lifeline to Detroit's biggest carmakers—Ford, General Motors, and Stellantis—whose production lines rely heavily on cross-border supply chains.

While Trump signalled a willingness to consider similar exemptions for other products, he made it clear that his broader trade offensive remains in full force, citing continued concerns over fentanyl smuggling.

The temporary relief did little to ease tensions between the United States, Canada, and Mexico, with Canadian officials hinting at potential retaliation and Mexico exploring alternative crude buyers in Europe and Asia.

Meanwhile, economic indicators in the United States suggest that tariff uncertainty is already taking a toll, with slowing job growth and rising business concerns over White House policy unpredictability.

Markets reacted with cautious optimism, as auto stocks rebounded but broader indices struggled to shake off recent volatility. For now, it remains to be seen how the situation will unfold.