By Adriano Marchese
Shares of Canadian auto parts makers rose sharply after President Trump announced a temporary pause on most tariffs and signaled a relief for Canada's automotive sector.
Thursday afternoon in a post on Truth Social, Trump said he authorized a 90-day pause and substantially lowered reciprocal tariffs to 10%.
U.S. Treasury Secretary Scott Bessent later confirmed that sectoral tariffs, like the 25% automotive and steel tariffs on Canada, will also be reduced to 10% for that time.
Magna International shares rose 7.5% on the news, reaching 47.05 Canadian dollars ($32.98), and Linamar advanced by 8.9% to C$48.15. Martinrea International, the smallest of the three auto parts makers, rose 5.6% to C$6.66. The stocks are down year-to-date 22%, 16% and 26%, respectively.
On March 11, Trump threatened higher tariffs on auto exports to the U.S., warning that they would effectively cripple the sector, in a post on Truth Social, which he claimed was in response to tariffs Canada had on agricultural products from the U.S.
He said at the time: "If other egregious, long time Tariffs are not likewise dropped by Canada, I will substantially increase, on April 2nd, the Tariffs on Cars coming into the U.S. which will, essentially, permanently shut down the automobile manufacturing business in Canada."
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
04-09-25 1518ET
