Auto stocks rally as Trump considers pausing tariffs on sector

Auto stocks rallied after Trump said that he might temporarily exempt the industry from tariffs. File
| Photo Credit: Reuters

Auto stocks rallied on Tuesday (April 15, 2025) after U.S. President Donald Trump said that he might temporarily exempt the industry from tariffs he previously imposed on the sector.

Also Read | Trump’s Commerce Secretary says new electronics tariff exemptions are temporary, chip tariffs coming

Motherson jumped over 8%, Bharat Forge surged nearly 6%, Tata Motors rallied 4.70%, and Mahindra & Mahindra climbed 4% on the BSE.

The stock of TVS Motor surged 2.93 per cent, Bajaj Auto (2.67%), Hero MotoCorp (2.42%), Ashok Leyland (2.35%), Maruti (2%) and Eicher Motors (1.84%).

The BSE auto index surged 3.43% to 47,634.47.

The 30-share BSE benchmark Sensex jumped 1,750.37 points to 76,907.63 in early trade. The NSE Nifty surged 539.8 points to 23,368.35.

“Adding to the positive outlook, U.S. President Donald Trump announced on Monday that he is considering exemptions on tariffs for imported vehicles and auto parts,” Vikas Jain, Head of Research at Reliance Securities, said.

Mr. Trump on Monday hinted at temporarily exempting the auto industry from tariffs he previously imposed on the sector.