Ford Motor Co. shares fell 3.9% to $13.86 in morning trading Monday as investors reassessed exposure to Canadian production following President Donald Trump’s announcement of a 50% tariff on all Canadian automobile, truck, auto parts and steel imports.
The White House framed the policy as an incentive to boost domestic manufacturing, with the tariff set to take effect January 1, 2027. Vehicles produced in the United States would face no tariffs under the measure. Morgan Stanley reduced its price target on Ford to $14 from $15, citing the elevated trade-risk premium.
Ford’s decline mirrored broader weakness among U.S. automakers. General Motors dropped 2.3% in session tracking, while Stellantis fell 4.48%. The S&P 500 slipped 0.3%, the NASDAQ declined 0.7%, and the Dow edged 0.32% higher.
Canada indicated plans to impose retaliatory tariffs in response to the U.S. measure. The announcement comes after Ford reported a second-quarter earnings beat and raised guidance in late July, a development that had initially supported the stock. Monday’s move reflects a sector-wide repricing of trade-policy risk rather than any Ford-specific operational change.
