GM, Ford stocks reel after Trump announces 25% auto tariffs on foreign-made vehicles, certain parts

[Think. Again.]

Pras Subramanian · Senior Reporter
Updated Thu, March 27, 2025, 9:57 AM CDT
Source: https://finance.yahoo.com/news/gm-ford-stocks-reel-after-trump-announces-25-auto-tariffs-on-foreign-made-vehicles-certain-parts-134341668.html

President Trump made good on his promise to impose tariffs on foreign automakers, imposing 25% duties on all cars and light trucks not made in the United States, as well as "certain auto parts." The move sent shares of GM (GM), Ford (F), and other automakers sharply lower on Thursday.

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GM shares tumbled over 8% in early trading, while Stellantis (STLA) shed nearly 4% and Ford dipped 3%. European automakers as well as Japanese and Korean brands fell on Thursday as well.

Though the new tariffs will hit mostly foreign automakers, domestic automakers, including the Big Three — Ford, GM, and Stellantis — are concerned about their impact too. GM, Ford, and Stellantis build vehicles in Canada, Mexico, and China, and they foresee higher production costs due to tariffs' effect on the auto supply chain.

Wednesday's tariffs seem to initially target only finished auto products, however the executive order and published fact sheet added parts like "engines, transmissions, powertrain parts, and electrical components" to the list of foreign goods subject to tariffs.

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