GM, Ford Stocks Slide as Trump Imposes 25% Tariffs on Foreign-Made Vehicles and Auto Parts

GM, Ford Stocks Slide as Trump Imposes 25% Tariffs on Foreign-Made Vehicles and Auto Parts

President Donald Trump has followed through on his pledge to target foreign automakers, announcing a 25% tariff on all cars and light trucks manufactured outside the United States, as well as select auto parts. The decision sent shockwaves through the auto industry, causing GM (GM) and Ford (F) shares to plummet on Thursday.

Stock Market Reaction:

• GM shares dropped more than 8% in early trading.

• Stellantis (STLA) slipped nearly 4%.

• Ford (F) fell by 3%.

Speaking from the White House on Wednesday, Trump framed the tariffs as a catalyst for economic expansion, stating, "This will continue to spur growth that you’ve never seen before." The new tariffs, set to take effect on April 2, will add to existing duties, with the White House estimating they will generate $100 billion annually in collected tariffs.