President Donald Trump announced that the United States will impose a 25% tariff on all cars not manufactured within the country permanently. This led to a drop in the stock prices of General Motors and Ford, while Tesla's stock initially declined but then recovered as Trump suggested the tariffs might have a neutral effect on Tesla.

Financial experts express uncertainty about the longevity of the tariffs and potential exemptions for U.S. automakers based on supply chains. The additional auto tariffs add to existing tariffs on steel, aluminum, and copper, raising concerns of higher prices and slower growth. Countries like Slovakia, Mexico, South Korea, and Japan are expected to be most impacted by the new auto tariffs. The imposition of these tariffs suggests that the Trump administration's trade disruptions may persist beyond the upcoming reciprocal tariff announcement on April 2.