Wall Street Declines Amid Trump's New Tariff Announcement
Stocks dip following President Trump's declaration of a 25% tariff on imported vehicles, set to take effect April 2.
NEW YORK.
The New York Stock Exchange closed lower on Thursday following an announcement by President Donald Trump regarding a 25% tariff on imported automobiles, anticipated to take effect on April 2. The Dow Jones Industrial Average fell by 0.37%, the Nasdaq Composite decreased by 0.53%, and the S&P 500 index declined by 0.33%.
The market was primarily weighed down by Trump's announcement on Wednesday to impose additional tariffs on vehicles not manufactured in the United States, marking a new escalation in the ongoing trade war that has intensified since January.
Trump stated from the White House that the tariffs will be applied to all cars not produced domestically, indicating that they will be effective from April 2, with collection starting the following day.
These new tariffs will be in addition to already existing duties.
While European and Asian manufacturers will be particularly impacted, American companies will also face repercussions due to their production models, which are heavily integrated with supply chains in Mexico and Canada.
At the close of trading, shares of General Motors fell 7.36%, hovering at $47.20. Ford’s stock decreased by 3.88%, while Stellantis saw a 1.25% drop.
Toyota and Honda also experienced declines of 2.85% and 2.67%, respectively.
According to analysts at JPMorgan, an estimated 82% of the vehicles sold by Ford are produced in the U.S., followed by 71% for Stellantis, 68% for Honda, 57% for Toyota, and 53% for General Motors.
Tom Cahill, an analyst at Ventura Wealth Management, noted that the market did not seem prepared for the announcement.
The next significant update is expected on April 2, which Trump has labeled “Liberation Day,” when he will announce the implementation of reciprocal tariffs affecting all imported goods to the U.S.
The New York Stock Exchange closed lower on Thursday following an announcement by President Donald Trump regarding a 25% tariff on imported automobiles, anticipated to take effect on April 2. The Dow Jones Industrial Average fell by 0.37%, the Nasdaq Composite decreased by 0.53%, and the S&P 500 index declined by 0.33%.
The market was primarily weighed down by Trump's announcement on Wednesday to impose additional tariffs on vehicles not manufactured in the United States, marking a new escalation in the ongoing trade war that has intensified since January.
Trump stated from the White House that the tariffs will be applied to all cars not produced domestically, indicating that they will be effective from April 2, with collection starting the following day.
These new tariffs will be in addition to already existing duties.
While European and Asian manufacturers will be particularly impacted, American companies will also face repercussions due to their production models, which are heavily integrated with supply chains in Mexico and Canada.
At the close of trading, shares of General Motors fell 7.36%, hovering at $47.20. Ford’s stock decreased by 3.88%, while Stellantis saw a 1.25% drop.
Toyota and Honda also experienced declines of 2.85% and 2.67%, respectively.
According to analysts at JPMorgan, an estimated 82% of the vehicles sold by Ford are produced in the U.S., followed by 71% for Stellantis, 68% for Honda, 57% for Toyota, and 53% for General Motors.
Tom Cahill, an analyst at Ventura Wealth Management, noted that the market did not seem prepared for the announcement.
The next significant update is expected on April 2, which Trump has labeled “Liberation Day,” when he will announce the implementation of reciprocal tariffs affecting all imported goods to the U.S.
