General Motors, along with many other automakers, saw stock fall after President Donald Trump announced new tariffs on foreign steel and aluminum. For steel, President Trump plans for a 25 percent tariff and a 10 percent tariff on aluminum, CNBC reported on Thursday.
GM stock fell 4 percent following the announcement and the automaker quickly issued a statement reiterating its supply chain practices.
“We purchase over 90 percent of our steel for U.S. production from U.S. suppliers,” GM said in a statement. The tariffs, therefore, wouldn’t affect the automaker significantly.
President Trump declared poor trade trends have “destroyed” American steel and aluminum companies and pointed to various nations such as China as the problem. Most of the United States’ imported steel comes from neighboring Canada.
The entire market reacted to the news with shares for companies such as Boeing and Caterpillar also dropping. Many investors fear a trade war as U.S. allies have already threatened retaliation with tariffs on various American products. The traditional sense is that consumer prices on goods, such as automobiles, will rise as imported steel and aluminum become more expensive at the cost of protectionism.