Shares of major North American automakers and suppliers fell Monday after former U.S. President Donald Trump threatened to impose 50% tariffs on Canadian vehicles and automotive parts, signaling a potential disruption to the continent’s integrated production model.
The proposal targets Ontario, a key hub for auto manufacturing, with Trump stating that the United States "does not expect to be doing much business with Ontario any longer." Existing tariffs already cover $20 billion of Canadian goods, and the expansion would further strain cross-border trade ties that have underpinned North American auto production for three decades.
Magna International, the largest Canadian auto parts supplier with $42 billion in revenue and a market capitalization of $18.0 billion, saw its shares drop 7.19% to $67.80. The company, headquartered in Aurora, Ontario, operates extensive manufacturing facilities that supply components to U.S. assembly plants. Its net margin stood at 2.0% in its most recent fiscal year, with revenue declining 1.9% year-over-year, while its debt-to-equity ratio reached 53.5%.
Ford Motor, identified as the most vulnerable among large automakers due to its Oakville Assembly plant in Ontario—which produces the Bronco Sport and Maverick—fell 3.33% to $13.93. The company’s market capitalization is $55.6 billion, with a net margin of -4.4% and a debt-to-equity ratio of 461%, the highest among the group. Technical indicators also signaled a sell, with the relative strength index (RSI) at 46.7.
General Motors, which operates multiple Canadian facilities including Oshawa Assembly and St. Catharines powertrain, declined 1.08% to $86.98. The company’s market capitalization is $76.3 billion, with a net margin of 1.5% and a debt-to-equity ratio of 215.3%. Despite the drop, technical indicators remained bullish on both daily and weekly timeframes.
Stellantis, the parent company of Jeep, Ram and Dodge, saw its shares fall 3.51% to $5.22, bringing its year-to-date decline to 53.8% and its one-year drop to 47.4%. The company’s market capitalization is $15.0 billion, with a net margin of -14.6% and a debt-to-equity ratio of 85.9%. Technical indicators across all timeframes signaled strong sell conditions, with daily RSI at 40.8 and weekly RSI at 33.8.
Analysts warn that a 50% tariff on Canadian vehicles and parts could force automakers to reassess supply chains, potentially leading to higher costs, reduced competitiveness, and shifts in production locations. The move would mark a significant escalation in trade policy, with implications for both U.S. and Canadian auto sectors.
