Stock Markets Edge Up as Trump Softens Auto Tariff

Markets rose on Tuesday following news that Donald Trump is set to let auto makers off some of his wide-ranging tariffs, boosting hopes of a less combative approach to his trade war.

- Agence France-Presse

HONG KONG:

A month that started with the explosion of Washington's "Liberation Day" tariffs on April 2 was on course for a more positive close as governments line up to cut deals to avert the full force of the measures.

The White House said foreign auto firms paying tariffs of 25% for their US car and parts shipments would not face other levies such as those on steel and aluminum, the Wall Street Journal said. Companies will also be reimbursed for fees already paid.

The move is aimed at making sure the various tariffs Trump has unveiled do not stack up on top of each other.

Commerce Secretary Howard Lutnick said the deal was "a major victory for the president's trade policy".

He said it rewarded firms "who manufacture domestically while providing runway to manufacturers who have expressed their commitment to invest in America and expand their domestic manufacturing".