Auto stocks rose Tuesday after the Trump administration agreed to delay imposing new tariffs on Mexico and Canada, offering relief to an industry that relies heavily on both countries for manufacturing.

General Motors, the largest producer of cars in Mexico, won’t provide details on how it would react if President Trump imposes 25 percent tariffs from the two countries.

In 1965, the Canada–United States Automotive Products Agreement was enacted, a precursor to NAFTA that removed tariffs between the two countries. This led to increased auto manufacturing in Canada and more jobs. The agreement was abolished in 2001, but by then NAFTA had more or less superseded it.

The automaker most exposed to tariffs might be Volkswagen, however, given that over 40% of its U.S. sales are produced in Mexico. Even after Trump’s agreement with Sheinbaum, the German manufacturer’s stock was down nearly 4%. On Monday morning, the company said it is currently assessing the potential impact of the tax increase.

General Motors and a few other companies make as much as 40 percent of their North American cars and trucks in Canada and Mexico, leaving them vulnerable to tariffs.

Global auto stocks rose Tuesday after the Trump administration agreed to delay imposing new tariffs on Mexico and Canada, offering relief to an industry that relies heavily on both countries for manufacturing.

The Trump administration has said the tariffs are a strategy to gain leverage on immigration and drug enforcement policies at the U.S.-Mexico border.