Shares of U.S. and international automakers declined on Monday after former President Donald Trump threatened to impose a 50% tariff on Canadian automotive imports, effective January 1, 2026. The policy proposal would exempt vehicles manufactured in the U.S., intensifying pressure on companies with significant Canadian production operations.
The S&P 500 Automobiles index was down 19% year-to-date prior to the announcement, with losses accelerating as investors reassessed exposure to cross-border supply chains. General Motors fell 1.13% to close at $87.93, though its after-hours session showed a modest decline of 0.25% to $87.71. The company’s stock carries a "Strong Buy" signal across daily, weekly and monthly timeframes, supported by a daily Relative Strength Index of 55.3 and Average Directional Index of 25.5.
Toyota Motor declined 1.7% to $173.20, extending a year-to-date drop of 10.19%. The Japanese automaker operates U.S. production plants in Texas, Kentucky and Mississippi, mitigating some tariff risk but still facing broader market headwinds. Ford Motor dropped 3.4% to $98.50, with its daily signal marked "Sell" and weekly signal "Neutral." The stock’s technical indicators showed weakness, including a daily RSI of 46.4 and ADX of 15.8.
Tesla fell 3.93% to $221.40, bringing its year-to-date decline to 23.86%. The electric vehicle maker’s U.S.-centric manufacturing footprint in Fremont and Austin provides partial insulation, though its weekly signal remains "Strong Sell" with a MACD reading of -19.95.
Stellantis, which operates Canadian plants in Brampton and Windsor, was the hardest hit among major automakers, falling 4.77% to $5.23. The stock is down 53.76% year-to-date and 48.42% over the past 12 months. Technical signals reinforced the downturn, with a "Strong Sell" rating on both daily and weekly timeframes, a weekly StochRSI of 0.0 and an ADX of 49.1. A bearish engulfing pattern observed in early August further signaled bearish momentum.
The proposed tariffs underscore growing trade policy uncertainty in the automotive sector, where supply chains span multiple jurisdictions. Investors are recalibrating valuations amid concerns over potential disruptions to production costs and profitability, particularly for manufacturers reliant on Canadian assembly or component sourcing.
