President Donald Trump said he would place 25% tariffs on “all cars that are not made in the United States.”
Auto stocks are digesting President Donald Trump’s announcement that he would place 25% tariffs on “all cars that are not made in the United States”, as well as certain automobile parts.
Trump’s administration had been telegraphing plans to put tariffs on the auto industry, but the effect of those moves and mechanism for enforcement are starting to take shape. Trump said the tariffs would go into effect April 2.
General Motors stock was down about 7% in early trading Thursday, while Stellantis lost more than 2%. Tesla, however, was marginally higher, while Ford Motor shares hovered around the flat line.
“In our coverage, for [original equipment manufacturers], Tesla and Ford appear to be the most shielded given location of vehicle assembly facilities although Ford does face incremental exposure on imported engines”, Deutsche Bank analysts wrote in a note Thursday.
