Tata Motors, M&M to Bharat Forge: Auto stocks surge up to 10% as Donald Trump signals pause on tariffs

Stock market today: Indian auto stocks opened higher in Tuesday’s trade, April 15, after U.S. President Donald Trump signaled a pause on auto tariffs, boosting investor sentiment. 

The announcement added to Trump’s recent moves, including a 90-day pause on tariffs for non-retaliating countries and exemptions for Chinese-made semiconductors and electronics, raising hopes that trade tensions may ease and global supply chains could stabilize.

The Nifty Auto index jumped 3.19% in early morning trade, reaching a two-week high of 21,205. All 15 constituents of the index were trading in the green, with Samvardhana Motherson leading the pack with a 10% gain, followed by Bharat Forge, Tata Motors, and Mahindra & Mahindra, each rising over 4%.

Other stocks such as Balkrishna Industries, Tube Investments of India, TVS Motor Company, Bosch, Maruti Suzuki India, Hero MotoCorp, Ashok Leyland, Eicher Motors, Bajaj Auto, MRF, and Exide Industries were also trading higher, with gains ranging between 1.2% and 3.5%.

The latest rollback of duties in certain sectors has helped global financial markets recover most of their recent losses, which had been driven by growing fears of a global recession.

The Indian stock market has also continued to surge for the second straight day, with Nifty 50 and Sensex surging another 2% to the day's high. 

Trump considers pausing his auto tariffs

President Donald Trump on Monday suggested that he might temporarily exempt the auto industry from the tariffs he previously imposed on the sector, in order to give carmakers time to adjust their supply chains.

“I’m looking at something to help some of the car companies with it,” Trump told reporters gathered in the Oval Office. The Republican president said automakers needed time to relocate production from Canada, Mexico, and other places. “They need a little bit of time because they’re going to make them here, but they need a little bit of time. So, I’m talking about things like that,” he added.

Matt Blunt, president of the American Automotive Policy Council—an association representing Ford, General Motors, and Stellantis—said the group shared Trump’s goal of increasing domestic production.

“There is increasing awareness that broad tariffs on parts could undermine our shared goal of building a thriving and growing American auto industry, and that many of these supply chain transitions will take time,” Blunt said.

The 25% auto tariffs, which took effect on April 3, have raised concerns about a potential increase in vehicle ownership costs. The duties have also prompted global automakers to halt exports to the U.S. For instance, Jaguar Land Rover (JLR) has temporarily suspended exports of its UK-made vehicles to the U.S. in response to the new tariff on foreign-made cars and light trucks.

Last week, after a bond market sell-off pushed up interest rates on U.S. debt, Trump announced that for 90 days, his broader tariffs against dozens of countries—including India—would be set at a baseline 10% to allow time for negotiations.

In addition to the general reprieve for other countries, Trump on Friday issued exemptions for Chinese-made semiconductors and electronics amid warnings that U.S. consumers could face skyrocketing prices for products such as smartphones and laptops.

However, Trump and some of his top aides clarified on Sunday that the exemptions were temporary and had been misconstrued, as the administration continued to pursue fresh tariffs on many of the listed items.

(With inputs from AP)

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