Ford, GM Stocks Edge Higher After-Hours As Investors Digest Trump's Auto Tariffs: Retail Chatter Spikes Amid Mixed Analyst Views

Shares of Ford Motor Co. and General Motors inched higher in after-hours trading Thursday, following losses earlier in the day after President Donald Trump announced steep tariffs on auto imports. 

The move sparked intense debate among retail investors, with mixed sentiment on Stocktwits.

According to The Fly, JPMorgan analyst Ryan Brinkman warned of a "material earnings risk" from what he described as "draconian auto tariffs" that now seem increasingly likely to take effect as soon as April 3. 

The research firm lowered its price target on Ford to $11 from $13 and on GM to $53 from $64, maintaining an 'Overweight' rating on both stocks. 

The revised targets reflect concerns over earnings volatility in the face of regulatory uncertainty, including tariffs, electric vehicle subsidies, and potential tax deductibility changes for U.S.-built vehicle interest expenses.

JPMorgan also raised its estimate of the total industry cost impact from $41 billion to $82 billion, as under the new proposal, parts that are U.S.-Mexico-Canada Agreement (USMCA) compliant will no longer be exempt.

However, BofA analysts reportedly suggested Ford may be "relatively less affected and could even benefit," given that imported models account for only about 20% of its total volume. 

Conversely, GM faces greater exposure, with 49% of its vehicles being imported, the research firm added.

Retail discussion on Stocktwits surged, with message volume jumping 144% for GM and 69% for Ford. Sentiment remained mixed. 

GM sentiment and message volume as of March 27. | source: Stocktwits F sentiment and message volume as of March 27. | source: Stocktwits

One user noted Ford's limited reliance on imports, saying, "Ford will remain the stock with the best dividend yield going forward and, IMO, the best stock of the big three." 

Others were more cautious, with one trader advising, "If you're in profit, sell [Ford] now and buy back below $9. I called this the other day, and now look."

One bullish user on GM's stream said, "Short-term pain for long-term gain."

In a potential development that could mitigate concerns, The Globe and Mail reported that following discussions between Canadian officials and U.S. Commerce Secretary Howard Lutnick, Canada expects the U.S. to soften the impact of tariffs on its auto industry.

With the tariffs set to take effect in April, investors will be closely watching for any guidance revisions from automakers when they report first-quarter earnings next month. 

A report from The Wall Street Journal has already raised concerns that Ford's high dividend yield may be at risk, as its 2025 outlook does not yet factor in the potential impact of tariffs, which could lead to a dividend cut.

Ford shares are down 0.1% year-to-date, while GM has lost more than 11%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<