Shares of GM, Ford, Stellantis continue to slide as Trump’s tariffs begin
Tariffs on imports from Canada and Mexico began Tuesday, sending automaker shares lower.
The auto industry is not taking kindly to President Trump’s 25% tariffs on goods from Canada and Mexico.
Shares of Detroit automakers GM, Ford, and Stellantis were all trading lower Tuesday as the new levies took effect. High prices and interest rates have hurt US car sales in recent years, and tariffs are expected to shock prices even further.
With so much of America’s car stock imported from other countries ($279 billion last year), and specific companies heavily relying on foreign production (GM, America’s largest automaker, made about 900,000 vehicles in Mexico last year), economists are anticipating a bumpy ride ahead.
A new study from the Anderson Economic Group found that US consumers could see auto costs rise up to $12,200 for some vehicles. Full-size SUVs could see a $9,000 bump, and pickup prices could spike $8,000. Smaller cars may rise more than $6,000.
Virtually every major automaker will be touched by the tariffs: up to a quarter of components in 2025 Tesla models are from Mexico, and Toyota and Honda each make about 40% of their North American cars in Canada and Mexico. Last year, more than one in five light vehicles sold in the US was imported from Canada or Mexico, according to S&P Global Mobility.
