Investing.com-- Major U.S. auto stocks rose in extended trading on Monday after experiencing sharp declines in the regular session as President Donald Trump announced a one-month delay in implementing tariffs on Mexican, and Canadian imports.
The initial announcement of tariffs had raised concerns about increased costs for automakers, given the integrated nature of the North American supply chain. Mexico is a significant hub for vehicle manufacturing and parts production, and tariffs could have led to higher expenses for U.S. companies relying on Mexican imports.
Ford Motor (NYSE:F) shares rose 1.3% in extended trading after closing nearly 2% lower in the regular session.
General Motors Company (NYSE:GM) stock rose 2.4% after the bell, reversing from a 3.2% loss in the day earlier.
Tesla Inc (NASDAQ:TSLA) shares had slumped 5.2% on Monday, but rose 1.7% in extended trading after Trump delayed tariffs.
Stellantis NV (NYSE:STLA) shares rose 1.5% in after-hours following a nearly 4% drop in the regular session.
The postponement of tariffs provided temporary relief to the auto industry, which had been bracing for potential disruptions. Analysts suggest that the delay offers a window for further negotiations, potentially averting the immediate financial impact on automakers.
Despite the day's declines, the broader market showed signs of recovery after the tariff delay announcement. U.S. stock index futures were higher on Monday evening.