After the tariff announcement, GM's stock dropped 8%, highlighting the immediate negative market reaction to increased manufacturing costs and potential price hikes for consumers.
While it’s too early to determine the precise impact of tariffs on prices, both GM and Ford face challenges in maintaining inventory and margins, pushing costs to consumers.
VW and Nissan, importing more parts from Mexico and Canada than GM or Ford, could face even steeper profit margins squeezes, risking their market viability.
A potential outcome of tariffs may be increased domestic production by GM and Ford, which could bolster US employment but depends on numerous favorable factors.
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