GM stock value was in decline on Monday following a threat by President Donald Trump to double tariffs on imported steel and aluminum. The proposed increase would raise the tax from 25 percent to 50 percent, and could take effect as soon as this Wednesday. Trump has also accused China of violating a trade agreement. GM stock value was down more than four percent by midday trading.
Per a report from Reuters, stock values for domestic steel companies surged, with the stock value for Cleveland-Cliffs rising more than 28, and Nucor and Steel Dynamics gaining over 11 percent. Meanwhile, stock values for major automakers showed significant losses, including GM and Ford.
For GM, an increase in steel tariffs could create a major ripple across supply chains, affecting everything from body panels to chassis components. The latest Trump tariff threats follow major volatility as automakers grapple with a broader trade war and a rapidly changing regulatory environment.
The Dow Jones Industrial Average was down 0.49 percent by late Monday morning, while the S&P 500 dipped 0.27 percent. The Nasdaq Composite fell slightly by 0.05 percent. Consumer-facing sectors were among the hardest hit, although energy stocks moved higher on the back of increased oil prices and OPEC+ production forecasts.
Investors now await commentary from Federal Reserve Chair Jerome Powell, who is set to deliver opening remarks for the Federal Reserve Board International Finance Division’s 75th anniversary conference. Investors will also look to Friday’s jobs report as a major indicator of economic momentum heading into summer.
As GM Authority reported last week, the United States Court of International Trade has ruled that Trump exceeded his presidential authority in implementing reciprocal tariffs under the International Emergency Economic Powers Act (IEEPA). While the ruling takes aim at Trump’s “Liberation Day” tariffs and certain tariffs on goods imported from Mexico and Canada, the 25-percent tariff on imported passenger cars was not affected.
Comments
GMA now stands for G0verMent authority 🤦🏼♂️
GM wouldn’t have any issues if they…BUILD IN USA
Guess you don’t understand very well. Hmm let’s see Tahoe are built in Texas, Traverse in Michigan, have corvette in Kentucky. Just to name a few
Equinox, Terrain, Envision, Trax, Blazer, Silverado (1500/HD), Envista, Trailblazer, and many more are all built out of the US… My list is BIGGER.
Hey Joey, are you ready to pay $10,000 to 30,000 more per vehicle to have it built in the USA? The only reason any vehicles are still built in the USA is for political reasons.
Yes. Those political reasons of bringing jobs back to the US and helping the American economy grow. So sinister…we should probable impeach.
Funny, the 40K Silverado trims are built in Indiana, the 70K trims in Mexico .
Must not be too much of a difference.
Mary Barrah is too stuck in her old ways to read the tea leaves. All the goodwill she had with Trump, she wasted in some personal crusade, and GM stock is stuck where it was in 2016, GM lost an entire decade, plus to her stubbornness. She should have left China JV a long time ago.
But she is committed to the 2010’s thinking
So let me get this straight., Trump wants to build more cars in the US, which is already the most expensive place on earth to build cars. Then he raises the price of steel used in by US automakers by yet another 25% over the 25% he already raised it? Get ready for $50,000 entry level cars and $100,000 mid-level pickups. Trump may be the stupidest human on earth.
Supposedly smart people are paid big bucks to run big companies, because they can find efficiencies where you and I cannot, and lower costs despite adversities.
Is this not why they are the ‘leaders’ of their businesses?
Yet, for the last couple decades, it seems that CEO choices have come from obviously under qualified, politically correct and executively weak individuals who can be easily controlled by big banks and hedge fund managers to enrich themselves at the expense of the stockholders (illegal by the way)
That is a perfect description of Mrs. Barrah
Are you braindead? Have you seen how much an S10 cost to build in Brazil?
Have you never seen a BMW?
An audi?
The USA is relatively cheap place to build equipment, not as cheap as Mexico, but there’s very few other places out there this cheap, and the places that do make them cheaper only succeed by currency manipulation and using non rust resistant metal.
You are right. And how long does it takes to build and prepare a new assembly line. TTTT(trumpy-trump-tariffs-turmoil) will be dead, cause of death, insanity, I hope, so he will not be able to attend the grand opening of all the major factories he wants now. If it is ever happening??? Let see how Musk will re-establish the Tesla Name. He will have to sell his cars half price and less, and realistic and good common sense citizens won’t even buy his cars and his ugly truck.
My previous message should have been adressed to Grand Prix GTP not to brainwashed Steve 29
See that there was 6 bad comments on my post. Prouve it if I am not right, you brainwashed republicains
A very good decision to impose a 50% tariff on steel and aluminum imports to the USA, because it’s environmentally friendly and will finally reduce the global shipment of pointless goods!
Furthermore, Europe needs to build up its military and needs EU steel and aluminum itself!
Furthermore, the EU Commission and Germany in particular shouldn’t just talk about eco-friendliness and then export pointless goods worldwide that can be produced anywhere.
But we also know that EU steel and aluminum are used by German OEMs for their production in the USA and Mexico so that the re-import of vehicles to Europe can take place with reduced tariffs (10% or less).
This is called pointless environmental pollution by Europe, because the EU and Germany are 100% subsidizing these big vehicle imports as government and commercial vehicles!!!
Don’t worry……………TACO
TACO = “Trump Always Chickens Out”? The man that was shot in the head and stood up yelling fight fight fight (you can’t fake that), the man who stood and stands up to bullies in global politics and global business, the man who has been the largest target of lawfare and propaganda ever seen, is a chicken?
The side that has shown themselves to be mentally ill women and weak men the last 4 years, some still cowering behind masks, calling someone a chicken. This is hilarious. Looks like you need to spend a lot more than $20M to understand men.
“The side that has shown themselves to be mentally ill women and weak men”. Wow. I see Nate Silver’s mental healthy study is making the rounds today. The stats are worse than I thought, shocking, and genuinely sad. The left are insane, literally.
“The side that has shown themselves to be mentally ill women and weak men”. Wow. I see Nate Silver’s mental healthy study is making the rounds today. The stats are worse than I thought, shocking, and genuinely sad. The left are insane, literally.
Trump, well maybe not Trump, but most of the people in his inner circle already know that the tariffs will do nothing but cause an economic calamity. Most of our trading partners are telling Trump to FO, and are happily building trade alliances with everyone but the USA. Trump demanding their best final offer, all they have to do is ignore him, and then wait for it…….TACO!
Trump will “f” up a wet dream.🙄
Almost as bad as Biden messing his diaper.
The US doesn’t have enough capacity to manufacture the steel and aluminum it needs.
Steel and Aluminum isn’t a singular commodity and the US doesn’t have the infrastructure to manufacture certain grades.
Aluminum is very electrically intensive to manufacture (from bauxite ore). And the US doesn’t have the means to do that in a cost effective manner. That’s why a lot of Aluminum comes from Quebec (low cost hydro generation).
So this is just pollical posturing to please those that don’t understand the basics of supply chains and manufacturing. And in the end it only serves to damage the US economy.
Heck the uncertainty alone is already damaging the economy.
You started off fine, but concluded wrong. It’s a complete shift in the global system and is going to take time, decades. You’re likely to see more regional trading partners come together. So as you mentioned, Quebec, with Canada, the US, Mexico, and countries further south working more and more together to form a region.
It IS political postering in a way, because the deals made now will position each country for this new trading/economic reality in the future. “Heck the uncertainty alone is already damaging the economy.” – No, especially in the mid and long term.
Oh it’s a shift in the global system. But not in favour of the US.
Countries like Canada and Mexico have been selling resources at a discount to the US. Now they will be upgrading infrastructure to better sell into other markets. You talk about forming a region. Then why is the US administration working so hard to piss off it’s best regional partners?
There are 8 Billion people on the planet and it’s projected to be 11 Billion by 2050. The world is resource constrained. And basically the US is sending a strong signal that it no longer wants to lead. It’s no longer interested in being competitive. And that it doesn’t want the resources it needs to grow.
I’m Canadian, And pissed doesn’t even touch what we are now. There are even talks of the possibly of joining the EU or at least the EEA. If the US doesn’t want our resources we are certainly more than happy to put the infrastructure in place to sell it to countries that are more than happy to pay more for them.
The US doesn’t hold the cards. And we fricken know it.
Every country wants and needs to position themselves as well in their regions now as possible, including the US. These are negotiations happening, at the highest level and importance for each country’s future.
If you’ve studied the geopolitical analysts I’ve discussed in the past, yes, the US is pulling away from being the world police. It’s expensive and we’re drowning in debt. The political appetite for war in the US is very low, we don’t want it. Also, predicted by many of these analysts for years.
Europe is aging/ dying, literally. So is China. The US is to a degree, but the Millennials position US fairly well for demographics in the world in the mid term. Again, A LOT of geopolitics is just math, demographics, resources’ location, processing location, and end user location. There is some guys work because of the complexities, no doubt.
The way to wage war is changing. Tech is RAPIDLY changing, and the world is moving away from Bretton Woods, the US and the rest of the world are plotting new courses.
I recommend finding one of Peter Zeihan’s for long talks online to start, if you are really interested in all this. He’s politically left in US politics and it has shown to be his blind spot recently in his predictions, but when he sticks to “the math”, he has some fantastic insights. I can only type so much here in my phone at once, but please look him up if you are genuinely curious where some of my comments and thoughts come from.
I agree, as an American watching Trump destroy not only our economy, but the Democratic Institutions that made us the envy of the world. Here’s hoping things get so bad that the mid-terms flip both houses of Congress that the numbers are high enough in the Senate to convict after the House impeaches the orange clown.
Trump doesn’t have a clue how to run any business outside of real estate. How could any intelligent person think he does. If you believe that Large Corporations do what they do inefficiently, you have something to learn. GM, for example, does everything in their power to purchase the best product for the least amount of money. Sometimes there is a small sacrifice in cost to get a quality product. I wonder how many overeducated “kids” nowadays are going to work in factories. Not a single one. It takes years to build a good workforce starting with the trades that are needed to actually build the factories and the equipment inside. Who is sending their kids to trade school anymore. NOBODY. Mainly because they don’t exist. Find a high school with a machine shop in it. Good Luck. Hands build things, not computers or cell phones. Apprenticeships take, on avg., 8000 hrs. Maybe TikTok or U-Tube can teach how to build Tools, Dies and Assembly Equipment. Not bloody likely. Sometimes you actually have to put the horse ahead of the cart. Trump would rather deport the horse and burn the cart. Effen idiot.