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Takeaways from the Key Takeaways
- Global automaker shares are falling Thursday, a week after President Donald Trump announced a 25 percent tariff on imported cars and auto parts that do not comply with the U.S.-Mexico-Canada Agreement.
- The levies will take effect "on or after 12:01 a.m." ET April 3. Those on auto parts will begin "no later than May 3."
- GM shares are dropping 6.5% in premarket trading, while those of fellow "Big Three" automakers Ford and Jeep maker Stellantis are down 2.5% and more than 1%, respectively.
Global automaker shares are falling Thursday, a week after President Donald Trump announced a 25 percent tariff on imported cars and auto parts that do not comply with the U.S.-Mexico-Canada Agreement.
The levies will take effect "on or after 12:01 a.m." ET April 3. Those on auto parts will begin "no later than May 3."
'Big Three' Automaker Stocks Drop, With GM Leading Declines
Investors were unnerved by the news, as they were worried about higher prices for cars, many which are produced in Canada or Mexico with highly complex supply chains.
Shares of General Motors (GM) are tumbling 6.5% in premarket trading, while those of fellow “Big Three” automakers Ford (F) and Jeep and Chrysler maker Stellantis (STLA) are falling 2.5% and more than 1%, respectively.
Toyota (TM) shares and Honda (HMC), both Japanese automakers, are down around 2%. Hyundai, who announced a $21 billion investment earlier in the U.S. on Monday, has ended down over 4% in Seoul trading. Volkswagen shares have fallen 1.5% in German trade.
Tesla (TSLA), the U.S. electric car maker, is less than 1% more expensive. Tesla—whose CEO Elon Musk’s work with the Department of Government Efficiency has unnerved some investors and analysts—said in a post on his X social media platform Sunday that “Teslas are the most American-made cars.” Musk did note in a separate blog post on Wednesday that “it is important to note that Tesla IS NOT unscathed.” The tariff impact for Tesla is still significant.”
CORRECTION—This article has been updated to reflect the source of an X post.
