Ford, GM Shares Jump As Trump Plans To Delay Auto Tariffs

Shares of Ford F and General Motors GM jumped on Wednesday as President Donald Trump plans to delay auto tariffs for six months , people familiar with the situation told CNBC.

Ford and GM shares both added about 1% after opening with declines on the day.

The White House has until May 18 to make a decision on whether it will add duties to imports of vehicles and auto parts. The president is considering tariffs as high as 25% on cars.

Trump sees auto tariffs as key leverage in trade negotiations with the European Union and Japan. But the E.U. has plans to retaliate with its own tariffs on up to $300 billion of U.S. goods .

Bloomberg first reported the auto tariffs delay.

WATCH: Trump administration to delay auto tariffs by six months

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