Trump's proposed tariffs on Mexico and Canada are weighing on the auto sector
The auto sector is taking a hit today, after President-Elect Donald Trump announced his latest tariff plans, which include a 25% tariff on goods from Mexico and Canada (higher than the proposed blanket tariff of up to 20% on all imports). Investors are considering the interdependence of the auto industry throughout North America, particularly the sale of auto parts through complex supply chains. Today, we're taking a look at how the "Detroit Big Three" are faring after the news.
At last check, Ford Motor Co (NYSE:F) stock was down 2.1% at $11.16, falling from last session's four-month high. The shares have yet to recover from their July 25 earnings pullback of 18.4%. In fact, $11.16 was exactly F's post-earnings close. The stock moved sharply lower after the most recent third-quarter earnings as well. Year to date, the equity is down 7%.
General Motors Co (NYSE:GM) stock was last seen down 8.5% at $55.09, pulling back sharply from last session's two-year highs. The $55 level appears to be keeping losses in check, however, as it did earlier this month. Since the start of 2024, GM is outperforming with a 53.7% lead.
Stellantis NV (NYSE:STLA) stock was down 5.4% at $12.64 at last glance, and earlier hit a fresh two-year low of $11.37. The shares have basically been in freefall since their March 25 record high of $29.51, and are now down 45.7% since the start of the year.