U.S. stocks experienced a decline on Thursday following President Donald Trump’s announcement of 25% auto tariffs, escalating global trade tensions and raising concerns about higher car prices. The Dow Jones Industrial Average dropped by 250 points, or 0.5%, while the S&P 500 fell 0.5%. The tech-heavy Nasdaq also decreased by 0.6%. Shares of major U.S. automakers saw significant drops in early trading; General Motors fell over 8%, Ford declined nearly 3%, and Stellantis, the parent company of Jeep and Chrysler, decreased by 4%. In contrast, Tesla shares rose by 1.5% in early trading. The tariffs will apply to imported passenger vehicles, including cars, SUVs, minivans, cargo vans, and light trucks, effective April 3. Additionally, key imported auto parts such as engines, powertrain parts, and electrical components will also be subject to tariffs. This measure targets a sector employing over a million U.S. workers with supply chains closely linked to Mexico and Canada. Canadian Prime Minister Mark Carney described the measure as ‘a direct attack on our workers,’ with the Canadian government planning to review its trade options. — news from ABC News
