March 5 (UPI) — President Donald Trump on Wednesday delayed imposing 25% tariffs on autos produced in Canada and Mexico, which triggered a rally in U.S. stocks during afternoon trading.
The Dow Jones Industrial Average rebounded by 550 points for a 1.3% gain on Wednesday, ABC News reported.
The S&P 500, likewise, rallied with a 1.16% gain to 5,842.63, and the NASDAQ Composite rose 1.46% to 18,552.73, CNBC reported.
The market increases occurred during afternoon trading after Trump earlier Wednesday announced he was delaying the 25% tariffs for a month.
Trump on Tuesday imposed the 25% tariffs on Canadian and Mexican imports and a 10% tariff on goods from China but delayed the Canadian and Mexican tariffs a day later.
The tariffs delay occurred after Trump spoke with leaders of Ford, GM and Stellantis, White House press secretary Karoline Leavitt told media at the White House.
“The president is giving them an exemption for one month so they’re not at an economic disadvantage,” Leavitt said.
Canadian Prime Minister Justin Trudeau called Trump on Wednesday to ask what could be done about the pending tariffs, Trump said Wednesday in a Truth Social post.
“I told him that many people have died from fentanyl that came through the borders of Canada and Mexico,” Trump said. “Nothing has convinced me that it has stopped.”
Trudeau told Trump the situation has improved, but Trump said he responded, “That’s not good enough.”
He said the call ended in a friendly manner but suggested Trudeau was using the situation to stay in power.
Customs and Border Protection officials reported about 99% of fentanyl seized in the United States came across the southern border with Mexico and less than 1% across the northern border with Canada.
Trump said he has a call scheduled with Mexican President Claudia Sheinbaum on Thursday.
During his Tuesday night address to a joint session of Congress, Trump said the nation will “take in trillions and trillions of dollars and create jobs like we have never seen before.”
He said imposing tariffs and encouraging automakers and others to use domestic auto parts and open more manufacturing plants in the United States instead of using parts made in Mexico, Canada and China will benefit the nation’s economy while creating more jobs for U.S. workers.
Trump also cautioned U.S. farmers a “little bit of an adjustment period” might be necessary before economic conditions improve.
“Tariffs are about making American rich again and making America great again,” Trump said. “It’s happening, and it will happen rather quickly.”