GM, Ford shares jump on report China is moving toward auto tariff cut Trump hinted at

Jonathan Ernst | Reuters

President Donald Trump talks with auto industry leaders, including General Motors CEO Mary Barra (L) and United Auto Workers (UAW) President Dennis Williams (R) at the American Center for Mobility in Ypsilanti Township, Michigan, U.S. March 15, 2017.

Shares of General Motors and Ford jumped on Tuesday on a Bloomberg News report that China is moving toward cutting tariffs on autos made in the U.S.

Shares of GM added 2.4 percent in premarket trading Tuesday. Ford rose 2.2 percent and Tesla rallied 2 percent. Overall stock futures also got a lift following the report.

Bloomberg News said the proposal would cut the tariffs to 15 percent from 40 percent, citing people familiar with the matter. China raised tariffs on U.S. autos to 40 percent in July in retaliation to U.S. tariffs.

A day after President Donald Trump agreed to a 90-day trade truce with China at the G-20 summit, he tweeted that the country had agreed to lower these auto tariffs.

tweet

But after the tweet, neither the White House nor China verified any such agreement. The White House did not immediately return a request for comment on Tuesday’s report.

Read the full report here.

This is a developing story. Check back for updates.