Market Reacts to Trump's Tariff Strategy

On Monday, the stock market witnessed a significant downturn in shares of leading US automakers, with Tesla experiencing a sharp 6% drop. This market reaction followed President Donald Trump's announcement of imposing a 25% tariff on imports from Mexico and Canada, alongside a 10% tariff on Chinese goods.

Diplomatic Developments and Market Implications

In a subsequent move, President Trump temporarily suspended tariffs on Mexico after reaching an agreement to deploy 10,000 troops to combat drug trafficking. Additionally, Trump mentioned having a productive conversation with Canadian Prime Minister Justin Trudeau regarding tariffs, with talks with China anticipated to occur shortly.

Impact on Major Automakers

By early afternoon, Tesla Inc. saw its shares fall to $380.37, marking a 6.03% decrease. Similarly, General Motors Company and Ford Motor Company experienced declines, with their stocks dropping to $47.85 and $9.91, respectively.