Ford, General Motors, Stellantis Stocks Dip On Trump’s Tariff Threat To Mexico, Canada: Retail Saw It Coming

Shares of Detroit's Big Three automakers — Ford Motor Co. ($F), General Motors Company ($GM), and Stellantis N.V. ($STLA) — slid during mid-day trading Tuesday after President-elect Donald Trump announced plans to impose a 25% tariff on all imports from Canada and Mexico.

Trump also announced an additional 10% tariff on imports from China once he takes office in January.

Ford shares fell over 2%, General Motors tumbled more than 7%, and Stellantis slipped over 5%.

The impact on the automakers extends beyond vehicle production in these countries, as a significant portion of the parts used in U.S. manufacturing also come from Mexico and Canada. All three companies rely on highly integrated supply chains across North America.

President-elect Donald Trump’s post on social media platform Truth Social vowing to place 25% tariffs on all imported from Mexico and Canada. | Source: @realdonaldtrump/TruthSocial

The move would blow up the Mexico-Canada-America trade deal that he signed in his first term on day one of his second term.

"If implemented, this would spell disaster for the U.S. auto industry and Detroit Three manufacturers, all of whom import significant numbers of vehicles from Canada and Mexico, as well as Volkswagen and other European OEMs," Bernstein analyst Daniel Roeska said in a note, reflecting broader concerns from other analysts who warn these tariffs could be “highly disruptive” for the entire U.S. automotive sector.

Mexican President Claudia Sheinbaum warned of retaliation against Trump’s proposed tariffs on Mexican exports, as the peso weakened against the dollar on Tuesday.

In a letter to Trump, she stated that issues like migration and drug consumption cannot be solved through threats or tariffs.

She highlighted the potential harm to U.S. carmakers, warning that reciprocal tariffs could lead to inflation and job losses in both countries.

Ford Motor Co. Sentiment and Message Volume on Nov 26 as of 12:45 p.m. ET | Source: Stocktwits

Retail sentiment around Ford remained upbeat in the ‘bullish’ (64/100) territory along with an increase in chatter to ‘high’ (63/100).

General Motors Company Sentiment and Message Volume on Nov 26 as of 12:50 p.m. ET | Source: Stocktwits

Meanwhile, retail sentiment around General Motors was also upbeat, in the ‘extremely bullish’ (89/100) territory, with chatter jumping to ‘extremely high’ (85/100).

Despite the drop in stock price, investors on the platform were cheering General Motors' integration into Formula-1 (F1).

Cadillac will become the 11th team on the F1 grid from 2026 even though its proposal to build its own power unit was rejected. Cadillac will instead be powered by Ferrari engines.

Stellantis N.V. Sentiment and Message Volume on Nov 26 as of 1:00 p.m. ET | Source: Stocktwits

Stellantis was the only one among "Detroit’s Big Three” with retail sentiment in the ‘bearish’ (30/100) zone along with an uptick in message activity to ‘high’ (67/100).

Retail investors across all three stocks on Stocktwits expressed little surprise, pointing to Trump’s long-standing focus on tariffs during his electoral campaign.

Stellantis has endured the toughest year among the trio, with its stock down 39% so far this year. Ford shares have also declined by 8%. 

In contrast, GM stands out as the sole performer in positive territory, rising 53% year-to-date, significantly outperforming broader market benchmarks.

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