Trump’s threats of imposing a 25% tariff on goods imported from Canada and Mexico caused shares of General Motors and Stellantis to fall. This could have a significant impact on the global automotive industry. UBS reports that the automotive industry is responsible for 26% of imports from Mexico to the U.S. and 12% from Canada. Nearly every major automaker operating in the U.S. has factories in Mexico, with GM and Stellantis producing profitable full-size pickup trucks. GM’s shares closed down 9% at $54.79 per share on Tuesday.
Chrysler parent Stellantis saw a 5.7% drop to close at $12.61 per share, while Ford Motor, which has less exposure in the countries, closed down 2.6% at $11.10 per share. Toyota Motor, Honda Motor, and others with production in Mexico closed down 3% or less. Trump’s announcement of a 25% tariff on U.S. imports from Canada and Mexico could be more aggressive than expected, potentially ending the regional free trade deal. Spokespeople for GM and Stellantis declined to comment on the potential tariffs. Wall Street analysts see Trump’s tariffs as a negotiation tactic. Ford remains committed to building in America. I kindly ask for your assistance in completing this task. Thank you for your cooperation.