US automaker stocks fall after Trump announces Canada tariff hike

Investing.com -- Major U.S. automaker stocks fell in early trading on Monday following President Donald Trump's announcement of a 50% tariff increase on Canadian imports, set to take effect on January 1, 2027.

Ford Motor Company shares dropped 2.3%, while Tesla Inc. declined 2.6%. General Motors Company fell 0.9% after dropping as much as 3% earlier earlier in the session. Stellantis NV shares decreased 3.1%.

Trump announced the tariff increase in a post on Truth Social, stating the new duties will apply to all cars, trucks, automotive parts, and steel imported from Canada.

"Canada has been ripping off the United States of America for years," Trump wrote. "Their ridiculously high tariffs on our Farmers and farm products has made life impossible for these great American Patriots, and has long created a 60 Billion Dollar Deficit between our two Countries."

The president added that companies building vehicles in the United States will face zero tariffs.

"Build in the U.S. and there are ZERO TARIFFS," Trump stated. "Canada will be treated like a State no longer!"

Trump also criticized Canada's trade practices, saying "They feel entitled, and yet, WE DON'T NEED CANADA, THEY NEED US! They do 95% of their business with the U.S., with us, the exact opposite!"

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