Stocks rose after the White House announced that it would delay the implementation of tariffs on auto imports, whose cars correspond to the agreements of the USA, Mexico, and Canada. American stock indexes rose on average, recovering losses after the series of losses, as investors hope that the exemption of auto imports from punitive tariffs introduced by President Donald Trump will open the door for further compromises.
Many global companies found relief after this decision, as tariffs threatened to undermine their production processes and financial results. Moreover, the lifting of tariffs on auto imports may positively impact the trade struggle between the USA and the European Union.
"This pressures certain industries, it impacts the economy, and it contributes to inequality in global trade," said an analyst.
Undoubtedly, this decision sparked excitement in the markets, after the US Treasury and the White House discussed tariff issues and negotiated with representatives from the auto industry. Investors hope that such decisions could pave the way for further easing of tensions in global trade.
