The Trump Tariff Roller Coaster

President Trump gave a one-month tariff reprieve to auto makers on Wednesday, a day after his 25% tax on imports from Mexico and Canada took effect. Everyone else will still pay. Welcome to the Trump tariff thrill ride, where you never know what’s going to happen next.

Stock prices surged Wednesday after official news of the auto reprieve, which had been signaled by Commerce Secretary Howard Lutnick. GM and Ford shares jumped in particular. This is the second time Mr. Trump has blinked on tariffs, and investors may figure he’ll do it again in a month.

Don’t bet the mortgage. White House press secretary Karoline Leavitt said the one-month exemption is to ensure U.S. auto makers are “not at an economic disadvantage” before the President’s tariffs on auto imports from other countries take effect on April 2.

The exemption may also be less than meets the eye. According to the White House statement, the exemption will apply to cars imported from Mexico and Canada. That means manufacturers could still get whacked with tariffs on parts and materials that cross the border, which could add thousands of dollars to the cost of each vehicle.