U.S. President Donald Trump said on March 5 he would temporarily exempt automakers from a new 25% import tax imposed on Canada and Mexico, just one day after the tariffs came into effect. The exemption is for cars made in North America that comply with the continent's existing free trade agreement for automotive production, which is deeply integrated between the three countries. 

More: Watch: Impact of the Trump Tariffs on North American Automakers

According to BBC News, the announcement helped bring a boost to U.S. shares, after two days of declines that wiped out gains the S&P 500 had seen since the presidential election in November.

White House press secretary Karoline Leavitt said Trump had issued a one-month exemption to the tariffs for the car industry after pleas from Ford, General Motors and Stellantis.

The tariffs were set to disrupt a third of car production in North America within a week, according to analysts at S&P Global Mobility.