Stock Market Takes a Hit
The market reaction was swift and brutal. In after-hours trading, major automakers saw their stocks tumble:
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GM fell nearly 7%
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Ford and Stellantis dropped over 4%
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Tesla slipped 1% in extended trading
Analysts caution that while Trump envisions a manufacturing boom, building new plants takes years and billions of dollars—a timeline that clashes with immediate economic realities.
Union Cheers, Business Fears
Despite economic uncertainties, United Auto Workers (UAW) praised the tariff, hailing it as a victory for blue-collar jobs.
“Ending the race to the bottom in the auto industry starts with fixing our broken trade deals,” UAW President Shawn Fain said. “This will bring thousands of good-paying union jobs back to communities across the U.S.”
But Fain also stressed that protecting American workers extends beyond tariffs, calling for stronger labor laws, retirement benefits, and universal healthcare.
Retaliation from Trading Partners
The tariff echoes Trump’s 25% steel and 10% aluminum tariffs imposed last month, which already triggered fierce retaliation from key U.S. trading partners.
