Automaker shares fall as Trump threatens 25% tariff on Mexico and Canada
DETROIT — Shares of automakers General Motors and Stellantis fell Tuesday morning after President-elect Donald Trump threatened to put 25% tariffs on goods imported from Canada and Mexico into the U.S.
DETROIT — Shares of automakers General Motors and Stellantis fell Tuesday morning after President-elect Donald Trump threatened to put 25% tariffs on goods imported from Canada and Mexico into the U.S.
Such tariffs would have a major impact on the global automotive industry, which has used the countries, particularly Mexico, for lower cost production of vehicles since the North American Free Trade Agreement went into effect in 1994.
UBS reports the automotive industry is responsible for 26% of imports from Mexico to the U.S., including vehicles and parts, and 12% from Canada.
Nearly every major automaker operating in the U.S. has factories in Mexico, however GM and Stellantis produce highly profitable full-size pickup trucks there.
Shares of GM, which has five large assembly plants in the countries that Barclays estimates will produce 1 million vehicles this year, were down by roughly 7% during early trading Tuesday.
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