Why Trump’s auto tariffs are crushing GM but not Tesla
President Trump announced plans to smack imported cars and car parts with a 25% tariff on April 3, and investors once again do not like it.
Understandably, auto stock performance is revealing which carmakers’ US sales rely more on imports: GM was down as much as 8% Thursday, compared to Ford’s 4% fall.
The discrepancy is likely due to the fact that about half of GM’s US sales (46%) are imports, compared to just a fifth (21%) for Ford. On the other hand, Tesla manufactures its vehicles entirely in the US and only imports 20% to 25% of its parts from Mexico. Its shares are up over 5% as of 11:20 a.m. Thursday.
Tariffs are widely expected to send auto costs surging for US consumers (up to $12,200 for some vehicles). The United Auto Workers have praised the levies, saying they could bring thousands of manufacturing jobs back to the US.
The discrepancy is likely due to the fact that about half of GM’s US sales (46%) are imports, compared to just a fifth (21%) for Ford. On the other hand, Tesla manufactures its vehicles entirely in the US and only imports 20% to 25% of its parts from Mexico. Its shares are up over 5% as of 11:20 a.m. Thursday.
Tariffs are widely expected to send auto costs surging for US consumers (up to $12,200 for some vehicles). The United Auto Workers have praised the levies, saying they could bring thousands of manufacturing jobs back to the US.
