Market Reaction to Trump's Tariff Announcement

In a significant market movement, shares of leading US automakers experienced a sharp decline this Monday. Tesla led the downturn with a staggering 6% drop, following President Donald Trump's announcement of imposing a 25% tariff on imports from Mexico and Canada, alongside a 10% tariff on Chinese goods.

Diplomatic Efforts to Mitigate Trade Tensions

In a subsequent development, President Trump temporarily suspended the tariffs on Mexico after the country agreed to deploy 10,000 troops to its northern border to combat drug trafficking. Additionally, Trump disclosed having a constructive dialogue with Canadian Prime Minister Justin Trudeau regarding the tariffs, with expectations of discussions with China to follow shortly.

Impact on Major Automakers

Among the notable stock movements, Tesla Inc. saw its shares fall by 6.03% to $380.37 at 1:40 pm ET. General Motors Company and Ford Motor Company also faced declines, with their stocks dropping by 3.20% and 1.79% respectively, highlighting the immediate impact of the tariff announcements on the auto industry.