By Brian Swint

Semiconductor and automobile stocks were getting a bump on Monday from reports that President Donald Trump might exclude those sectors from new tariffs due to take effect on April 2.

While the news is certainly good for those sectors--those import duties significantly add to the cost of doing business, especially when supply chains are spread across international borders--there's still plenty of uncertainty about what the White House might do in the future. The short-term changes to policies are still creating some unease.

That's why stocks haven't risen much. Taiwan Semiconductor Manufacturing Co.'s American depositary receipts added 0.7% in premarket trading. Marvell Technology gained 2.1%, and Micron rose 0.4%. Larger companies such as Intel, Broadcom, and AMD were up 1.2%, 1.6%, and 1.2%, respectively.

It was a similar story for the nation's biggest car makers. Ford Motor rose 1.1% and General Motors added 2.1%. Stellantis, which is based in the Netherlands and owns the Chrysler and Dodge brands, saw its ADRs rise just 0.2% in premarket trading.

Trump's latest round of tariffs will be more targeted than originally thought. The president has called April 2 "Liberation Day" because that's when so-called reciprocal tariffs, or equalizing taxes that other countries charge, will take effect, along with levies on certain sectors. The administration now plans to focus on certain countries that have the biggest trade deficits with the U.S., The Wall Street Journal reported, citing people familiar with the plans.

The stock market initially rose dramatically after Donald Trump was elected on optimism that the new administration would cut taxes and lighten regulation. Traders initially dismissed tariffs as a negotiating tool.

However, since Trump put some of the trade taxes into force and said he was willing to tolerate a painful transition phase for the economy as the new rules are introduced, sentiment has soured. The S&P 500 has lost 3.6% this year. Futures for the index were up 0.9% early Monday.

Write to Brian Swint at brian.swint@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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March 24, 2025 06:41 ET (10:41 GMT)

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