Impact of Tariffs on US Automakers

Following President Donald Trump's announcement of imposing a 25% tariff on imports from Mexico and Canada, and a 10% tariff on Chinese goods, shares of major US automakers experienced a significant drop. Tesla led the decline with a 6% fall, signaling a rocky road ahead for the auto industry amidst growing trade war concerns.

Trump's Temporary Relief and Ongoing Negotiations

In a temporary reprieve, President Trump has put tariffs on Mexico on hold for a month, following Mexico's agreement to deploy 10,000 troops to its northern border to combat drug trafficking. Additionally, Trump mentioned a "good talk" with Canadian Prime Minister Justin Trudeau regarding tariffs and indicated that discussions with China are expected to resume within the next 24 hours.

Stock Market Reaction

By early afternoon, Tesla Inc. shares had dropped to $380.37, marking a 6.03% decrease. Similarly, General Motors Company and Ford Motor Company saw their shares fall by 3.20% and 1.79%, respectively, reflecting the market's nervous reaction to the unfolding trade tensions.