General Motors and Ford stocks decline due to potential for Trump tariffs increasing car costs by $3000

The article discusses the potential impact of new tariffs proposed by US President Donald Trump on the automotive industry. The tariffs, which could add up to $3,000 to car prices, would be in response to Mexico’s decision to impose its own tariffs on US goods.

Key points from the article:

• New tariffs could lead to a significant increase in car prices, potentially affecting consumer demand and the overall economy.
• Major automakers such as General Motors (GM), Ford, and Stellantis could be affected by the tariffs, with some having plants in Mexico and others importing components from the country.
• The proposed tariffs have sparked concerns among investors, who are worried about their potential impact on companies’ profitability and stock prices.
• Automakers are already gaming out various scenarios to determine how they would adjust pricing and profitability in response to new tariffs.