Wall Street Rises Midday on Tariff Exemptions, Auto Policy Shift

U.S. stocks climbed across major indexes midday Tuesday as investors reacted positively to easing trade tensions and a key policy shift in automotive tariffs.

The Dow Jones Industrial Average rose 293 points, or 0.73%, to 40,520.9. The S&P 500 added 20.22 points, or 0.37%, to 5,548.97, while the Nasdaq Composite gained 40.95 points, or 0.24%, to 17,407.1. The Russell 2000 advanced 0.32%, up 0.62 points to 195.56.

Gains followed news that China will begin granting exemptions from its 125% tariffs on selected U.S. imports, as Beijing seeks to reduce economic pressures from the ongoing trade conflict. China’s Ministry of Commerce is gathering input from domestic businesses to determine which goods qualify for the exemptions, focusing on products vital to the local economy.

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Meanwhile, the U.S. administration announced a major policy update exempting vehicles assembled in the United States with at least 85% domestic content from automotive tariffs. The measure, effective retroactively from the April 3 tariff start date, also includes reimbursements for companies that previously paid compounded tariffs on components such as steel and aluminum.

Automakers including General Motors and Ford welcomed the decision, with GM expressing appreciation for the administration’s support. However, GM also cautioned that trade uncertainty remains a factor in its long-term earnings outlook.

The positive sentiment was tempered by continued volatility in global logistics. According to data from Vizion, China-to-U.S. container bookings dropped 44% year over year for the week ending April 14. Logistics firm Drewry estimates that global container volume will shrink by 1% in 2025 due to trade-related disruptions.

Despite the broader impact on supply chains and consumer pricing, the stock market appeared buoyed by signs of moderation in tariff enforcement and the potential for improved trade dynamics.