President Donald Trump unveiled a 25% tariff for all cars not made in the U.S.
President Donald Trump yesterday unveiled a 25% tariff for all cars not made in the U.S, effective next Wednesday, April 2. In response, shares of General Motors Co (NYSE:GM) and Ford Motor Co (NYSE:F) are lower, as both companies manufacture cars in Mexico, Canada, and other countries. J.P. Morgan Securities slashed its price objective on F and GM to $53 and $11 from $64 and $13, respectively.
GM is down 6.8% to trade $47.48, pacing for its worst single-day percentage loss since January. The security already shed 12.4% in 2025, but a familiar floor at the $46 region -- an area that coincides with its 200-day moving average-- looks ready to contain today's gap.
F was last seen 4.4% lower to trade at $9.84, looking to extend its 22.3% year-over-year deficit and snap a three-day win streak. Despite support from its 20-day trendline, the stock is still facing resistance at $10.40, which rejected rallies in January and February.
Both equities are getting blasted in the options pits today, with volume running at triple the intraday average for GM, and double for Ford. For the former, the most popular contract is the January 2026 55-strike call, while for the latter the weekly 4/4 10.35-strike call is seeing the most activity.