Shares Of Gm And Other Automakers Slump Following Trump Tariffs, With Tesla The Exception

Shares of major automakers slumped following President Donald Trump's announcement that he will place 25 tariffs on auto imports.

Automakers have spread out their supply chains and production facilities throughout North America. Parts and production steps often cross one or more borders during the process. That means it will cost the major automakers more money to build their cars and trucks.

The tariffs will take effect April 3.

"There are still a lot of unknowns, but if this remains in place, there will clearly be some pain for the companies to digest," said Joseph Spak, analyst at UBS, in a note to investors.

Higher costs will likely force companies to raise prices on new vehicles at a time when consumers are already faced with near record-high car prices. The tariffs could boost inflation overall, hurting consumers who are growing more worried about the economy.