By Gokhan Ergocun
ISTANBUL (AA) - US stocks ended higher Wednesday after President Donald Trump granted some automakers a one-month exemption from import tariffs he imposed on Canada and Mexico.
While investors were focused on Trump's tariff policy, a positive course was observed in stock markets after developments that could alleviate increasing trade tensions.
The US administration, which began imposing a 25% tariff on goods imported from Canada and Mexico, announced that a one-month exemption will be granted to cars coming into the country under the US-Mexico-Canada Agreement (USMCA).
White House Spokesperson Karoline Leavitt said that Trump met with the leaders of the “big 3” automakers -- Ford, General Motors and Stellantis -- and that an exemption was granted upon their request to avoid an economic disadvantage.
Following the development, General Motors' shares gained 7.2%, Ford's shares gained 5.8% and Stellantis' shares gained 9.2%.
While concerns that tariffs could increase inflationary pressures continued, the Federal Reserve’s Beige Book report revealed concerns about the impact of tariffs on prices.
On the macroeconomic data side, private employers added 77,000 new jobs in February, well below market expectations.
Factory orders in the US increased by 1.7% in January, in line with expectations.
The Dow Jones Industrial Average rose 1.14%, or 485.60 points, to end the day at 43,006.59.
The S&P 500 went up by 1.12%, or 64.48 points, to 5,842.63, and the Nasdaq Composite gained by 1.46%, or 267.57 points, to 18,552.73.
The VIX Index, also known as the “fear index," dropped 6.72% to 21.93.