Shares in automaker General Motors (GM) accelerated higher today after a bombastic thumbs up from a triumphant President Trump.
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In a post to Truth Social, President Trump hailed a trade deal with Vietnam which could be good news for the US auto industry.
Large Engine Demand
Putting on his best regal voice Trump said that it was his Great Honor to announce that “I have just made a Trade Deal with the Socialist Republic of Vietnam after speaking with To Lam, the Highly Respected General Secretary of the Communist Party of Vietnam. It will be a Great Deal of Cooperation between our two Countries.”
Trump said that the terms of the deal would see Vietnam paying the United States a 20% tariff on any and all goods brought into the U.S. and a 40% tariff on any transhipping.
“In return, Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade. In other words, they will “OPEN THEIR MARKET TO THE UNITED STATES,” meaning that, we will be able to sell our product into Vietnam at ZERO Tariff. It is my opinion that the SUV or, as it is sometimes referred to, Large Engine Vehicle, which does so well in the United States, will be a wonderful addition to the various product lines within Vietnam.”
Auto in Gear
That will be good news for General Motors, whose brands Chevrolet, GMC and Cadillac all have popular SUV models. Other beneficiaries will likely be Ford (F), Stellantis (STLA), Rivian (RIVN) and even Tesla (TSLA) run by Trump’s former top buddy Elon Musk.
It comes at a tricky time for automakers given tariff uncertainty and volatile consumer confidence.
Stopping, presumably to wipe his brow and have a soft drink, the President once more turned from salesman to statesman.
“Dealing with General Secretary To Lam, which I did personally, was an absolute pleasure. Thank you for your attention to this matter!” he said.
For more Trump social media comments and the impact they have on stocks and sectors, visit our Trump Dashboard. Is he grumpy Donald? Trumpy Donald? Or the rarely seen and heard Neutral Donald?
Is GM a Good Stock to Buy Now?
On TipRanks, GM has a Moderate Buy consensus based on 11 Buy, 7 Hold and 2 Sell ratings. Its highest price target is $65. GM stock’s consensus price target is $51.28 implying a 1.44% downside.
