U.S. President Donald Trump says executives from General Motors and Ford personally thanked him for the new 25% tariffs on imported trucks and parts.

According to Trump, these measures sent their stock prices soaring and “saved American automakers from a deep and prolonged market slump.”

Tariffs Ignite a Rally in Auto Stocks

Trump wrote on Truth Social that senior executives from both automakers called him shortly after the tariff announcement.

“They told me their stocks surged thanks to the tariffs. These actions saved jobs and the industry,” Trump said.

The new 25% import tax on medium- and heavy-duty trucks and their parts will take effect on November 1, but it’s already shaking up the auto market.

Traders rushed to buy shares of automakers following the announcement. GM stock jumped 14% on Tuesday morning and is now up 24% year to date, marking an impressive 35% gain over the past 12 months.

Trump emphasized that the tariff strategy aims to push foreign manufacturers to build more vehicles in the U.S., adding that it’s “working faster than expected.”

GM Raises Prices and Reduces Losses

Inside General Motors, the mood is cautiously optimistic.

CFO Paul Jacobson told Yahoo Finance that the financial impact of tariffs is “more manageable than initially feared.”

GM now expects the tariffs to reduce profits by $3.5–4.5 billion, down from previous forecasts of up to $5 billion.

To offset these losses, GM has increased prices for its SUVs and pickup trucks, which continue to see strong demand.

Jacobson highlighted the company’s “historic resilience”, pointing to how GM overcame the pandemic and the global chip shortage.

“We’re building on that strength, and we believe 2026 could be an even better year than 2025,” he said.

GM also confirmed it is in talks with South Korea, Mexico, and Canada on trade agreements that could further stabilize its supply chains.

Ford Faces Recalls and Production Delays

While GM is stabilizing, Ford is battling a wave of recalls and supply disruptions.

The automaker announced a recall of 1.45 million vehicles due to a rear camera defect that may display a distorted or blank image while reversing.

The National Highway Traffic Safety Administration (NHTSA) warned that the issue increases the risk of accidents.

This follows earlier recalls including:

  • 290,000 vehicles this month for similar camera issues,

  • 1.1 million vehicles in May,

  • another 200,000 in July.

The situation worsened after a fire at a New York aluminum plant, which disrupted supplies for Ford Expedition and Lincoln Navigator models — both of which are high-margin vehicles.

According to an internal Wall Street Journal report, Ford has extended the suspension of production for these models at its Kentucky truck plant until October 26, also cutting output of its F-Series Super Duty trucks, which can sell for over $100,000 each.

U.S. Auto Industry Faces a Turning Point

While GM turns tariffs into an advantage, Ford struggles with quality issues and production slowdowns.

The broader American auto sector is entering a period of realignment, as manufacturers adapt to new tariffs, higher costs, and technological challenges.

Trump’s tariffs may have boosted domestic automakers on Wall Street, but they also raise a critical question — how long can profit margins hold up amid rising costs and supply chain uncertainty?

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