“Ford and GM Stocks Rise as Trump Eases Auto Tariffs; Adidas and Porsche Warn of Price Hikes”

Ford and GM Stocks Surge Amid Auto Tariff Relief

Shares of Ford and General Motors saw positive movement on Tuesday after reports indicated that President Donald Trump is planning to ease tariffs on U.S. automakers. According to a recent Wall Street Journal report, Trump is expected to scale back auto levies ahead of his trip to Michigan, which will mark his 100th day in office.

This change would restructure tariffs, removing the additional duties on steel and aluminum for car manufacturers like Ford and GM. This retroactive move could allow these automakers to reclaim tariffs they have already paid, easing financial pressure.

The revised tariffs are expected to reduce cost increases for GM, which was facing a potential $20 billion to $40 billion rise in expenses. With the new adjustments, GM may face a reduced increase of around $10 billion to $15 billion. As a result, Ford’s stock rose by 1.1%, and GM saw a 0.9% gain in premarket trading. Shares in Stellantis (Jeep’s parent company) also rose by 2.9%.

Adidas, HSBC, and Porsche Flag Tariff Concerns

While U.S. automakers benefit from tariff relief, several European companies are raising alarms about the broader economic impact of Trump’s trade policies. Adidas, the global footwear brand, has warned that tariffs are hindering its ability to upgrade its financial projections for the year. The company also cautioned that the tariffs would eventually lead to higher sneaker prices for consumers.

HSBC, the British multinational bank, has expressed concerns that economic uncertainty due to tariffs could reduce demand for lending services. Similarly, Porsche has lowered its financial outlook, citing declining deliveries in China and the adverse impact of tariffs in the U.S. on its operations.

Impact of Tariffs on Global Business

These developments underscore the ongoing tension between trade policies and global business operations. As the U.S. government adjusts its tariffs on the automotive sector, the broader impact on international companies, particularly in Europe, remains a critical concern. For now, U.S. automakers are seeing some relief, while global firms like Adidas and Porsche are bracing for higher costs and potential revenue slowdowns due to the shifting trade landscape.