Shares of Ford and General Motors jumped on Wednesday as President Donald Trump plans to delay auto tariffs for six months, people familiar with the situation told CNBC.

Ford and GM shares both added about 1% after opening with declines on the day.

The White House has until May 18 to make a decision on whether it will add duties to imports of vehicles and auto parts. The president is considering tariffs as high as 25% on cars.

Trump sees auto tariffs as key leverage in trade negotiations with the European Union and Japan. But the E.U. has plans to retaliate with its own tariffs on up to $300 billion of U.S. goods.

Bloomberg first reported the auto tariffs delay.

WATCH: Trump administration to delay auto tariffs by six months