U.S. and global automakers declined Monday after former President Donald Trump proposed a 50% tariff on Canadian automotive imports effective January 1, 2026, while exempting U.S.-made vehicles from the levy.
The S&P 500 Automobiles Index was down 19% for the year before the announcement, reflecting broader pressure in the sector. General Motors shares were largely resilient, closing at $87.93, up 2.07% on the day. Ford Motor fell 3.33%, while Tesla dropped 3.51% to $350.12. Stellantis, which operates Canadian plants in Brampton and Windsor, declined 4.77% to $5.23, extending a 53.76% year-to-date loss.
Toyota Motor, which maintains U.S. manufacturing facilities in Texas, Kentucky and Mississippi, was down 10.19% year-to-date but showed relative strength with a daily gain of 1.72% on Monday. The company’s weekly relative strength index stood at 61.0, indicating upward momentum.
Technical indicators highlighted weakness in several names. Tesla’s weekly MACD stood at -19.95, while Stellantis’s weekly StochRSI registered at 0.0, signaling oversold conditions. Ford’s daily relative strength index of 46.4 suggested bearish short-term momentum, with its average directional index at 15.8.
The proposed tariff framework targets Canadian vehicle imports while offering zero-tariff treatment to U.S.-based production, potentially reshaping supply chain dynamics for North American automakers.
