The US shares launched on Thursday in the first trade since President Donald Trump announced 25% of car tariffs, increasing the global trade war and encouraging higher cars.
Dow Jones Industrial Average dropped 250 points, or 0.5%, while s& P 500 dropped 0.5%. Nasdaq Weight technology dropped 0.6%.
The US main car maker shares plummeted in the initial trade. General Motors dropped more than 8%, while Ford fell by almost 3%. Stellantis – Jeep and Chrysler’s parent companies – decreased 4%.
Tesla, the maker of an electric car led by Trump-Pentika Elon Musk, against the trend. Tesla’s stock stretched 1.5% in early trading on Thursday.
Traders work on the floor in the New York Stock Exchange (NYSE) in New York City, March 26, 2025.
Brendan McDermid/Reuters
The 25% tariff will be applied to imported passenger vehicles, including cars, SUVs, Minivans, Van Kargo and Light Trucks, according to the White House facts released after Trump’s Oval Office comments. The tariff will take effect on April 3.
The tariff will also be applied to imported car parts, including engines, parts of Powertrain and electrical components.
Automatic tariffs are set to target sectors that employ more than one million US workers and depend on supply chains that are interrelated with Mexico and Canada.
Canadian Prime Minister Mark Carney on Wednesday said the size was “direct attack on our workers.” The Canadian government plans to review its trade options, said Carney.
This is a developing story. Please check again for updates.