Automaker shares drop as Trump threatens tariffs on imports from Canada and Mexico

Shares of General Motors and Stellantis dropped on Tuesday after President-elect Donald Trump threatened to impose a 25% tariff on imports from Canada and Mexico. This move could significantly affect the automotive industry, which relies on these countries for production. GM's shares fell about 7%, while Stellantis saw a decline of over 4%. Other automakers, including Ford and Toyota, also experienced losses, reflecting concerns over increased production costs and potential trade disruptions. Trump plans to use an executive order to implement these tariffs when he takes office on January 20. This approach differs from expectations of renegotiating the existing trade agreement, raising uncertainty in the automotive sector.