NEW YORK (AP) — Shares of major automakers slumped following President Donald Trump's announcement that he will place 25% tariffs on auto imports.
Automakers have spread out their supply chains and production facilities throughout North America. Parts and production steps often cross one or more borders during the process. That means it will cost the major automakers more money to build their cars and trucks.
The tariffs will take effect April 3.
“Ultimately, if these tariffs remain in place, we see vehicle prices going higher to help offset the cost,” said Joseph Spak, analyst at UBS, in a note to investors.
General Motors slumped 7.4%. The Detroit automaker could be among the hardest hit of its peers under broad tariffs, as it sources about 40% of vehicles sold in the U.S. from Mexico and Canada, according to analysts at JPMorgan.
Ford, which slipped 3.9%, is less exposed with under 10% of vehicles sourced outside of the U.S., JPMorgan said.
Stellantis, which is based in the Netherlands but has significant manufacturing operations in North America, fell 1.3%.
Honda shares traded in the U.S. fell 2.2% and Toyota shares traded in the U.S. fell 2.5%.
One exception was Tesla. The cars it sells in the U.S. are produced domestically, although CEO Elon Musk noted in a post on X that some car parts used in Teslas come from other countries. Its shares edged up 0.4%. The stock is still down more than 30% this year due to lagging sales in its major markets.
Auto parts suppliers also lost ground. Autoliv fell 3.5% and Aptiv slipped 5.4%. Gentex fell 3.6% and Lear fell 8.3%
Consumers are already facing near record-high car prices. The average price of a new vehicle was $48,039 as of February, according to Cox Automotive's Kelley Blue Book. That's not far from the record of just under $50,000 in late 2022.
Other costs related to car ownership have continued to squeeze consumers. The costs of insuring and repairing a vehicle continued rising throughout 2024 and into 2025. Such costs have been among some of the factors keeping overall inflation stubbornly high. Economists worry that tariffs could further reignite inflation as consumers grow increasingly worried about high prices and the economy.
Automakers have been preparing for tariffs since Trump started the trade war with key trading partners in early February. General Motors and others have worked to get more inventory into the U.S. ahead of any tariffs.
“If they become permanent, then there’s a whole bunch of different things that you have to think about in terms of where do you allocate plants and do you move plants,” said Paul A. Jacobson, chief financial officer at General Motors, during a conference in February.
Trump said the latest round of auto tariffs will be permanent. He has argued that they will lead to automakers opening more factories in the U.S.
“As much as the market is pricing in a big impact of tariffs and lost profitability, think about a world where on top of that, we’re spending billions of capital, billions of dollars in capital, and then it ends, right,” Jacobson said. “So we can’t be whipsawing the business back and forth.”
FILE - This is the grill on a GMC Sierra Heavy Duty Denali HD 2500 truck on display at the Pittsburgh International Auto Show in Pittsburgh, Feb. 15, 2024. (AP Photo/Gene J. Puskar, File)
MIAMI GARDENS, Fla. (AP) — Novak Djokovic faced a series of obstacles Sunday in the Miami Open final: a delay of more than 5 1/2 hours before the match, an eye infection and a slippery court due to high levels of humidity following the rain.
But the largest roadblock was the youth and power of 6-foot-4, 19-year-old phenom Jakub Mensik, who outdueled the 37-year-old Serbian 7-6 (4), 7-6 (4) to win his first ATP title.
Ranked 54th entering the tournament, the Czech Republic teenager plowed through Djokovic with poise and a stellar 130 mph serve. He collected 14 aces and got broken only once. Mensik bashed a service winner on match point and fell on his back.
"You’re the one I idolized when I was young," Mensik said to Djokovic during the ceremony after the match that lasted 2 hours, 3 minutes. “I started playing tennis because of you."
Mensik’s victory spoiled the party for Djokovic, who was seeking his 100th career title and a record seventh in the Miami Open. Djokovic will have to wait, while the teenager looks ready to join the elite.
“This is a joyous moment for him and his family — an unbelievable tournament, first of many," Djokovic said. “It hurts me to admit it, you were better. In the clutch moments you delivered the goods. For a young player like yourself, this is a great feature."
The crowd pulled hard for Djokovic, who hadn’t played here since 2019. More than three-quarters of the fans stuck around despite the massive delay, chanting “No-vak!" and singing his name across critical parts of the match.
Djokovic, far from a fan favorite here earlier in his career, saluted the fans, saying it was one of the warmest crowds he’s had ever.
But the men’s leader with 24 Grand Slam titles seemed compromised by his eye issue, with redness seen under the eyelid. Djokovic applied eyedrops during two changeovers in the first set. It was unclear if it affected his vision.
Afterward, Djokovic said he “really prefers not to talk about" his eye, but said “I didn’t feel my greatest on the court."
Djokovic called it “a weird day."
“It’s the same for both players," he added. “You have to accept the circumstances. I tried to make the most out of what I had or was facing but, yeah, it was quite different from any other day of the tournament for me."
During the set, he also slipped twice on the court. The humidity reached 90% after hours of rain disrupted the card. Sweating profusely, Djokovic asked the umpire for a bucket of sawdust to sprinkle on his wet grip.
Mensik had lost to Djokovic in a three-setter last October at the Shanghai Masters but the youngster said before the match he had played too nervously.
Mensik was playing his first ATP 1000 final. He was not quite 2 years old when Djokovic won his first Miami Open title in 2007.
Djokovic knew Mensik’s potential after inviting him to his camp in Belgrade to train when the prodigy was 16.
“He has the complete game. His serve is incredible, powerful, precise,” Djokovic said.
There was more fearlessness this time than in Shanghai. Mensik got up 3-0 with an early break but Djokovic broke back at 4-3, then held for 4-4 after fans chanted his name.
Mensik held for a 6-5 lead in a game that saw Djokovic take a tumble in the doubles alley chasing a drop shot. Mensik served it out with his seventh ace.
In the first-set tiebreak, Mensik charged ahead 5-0. Mensik executed a leaping backhand volley winner and Djokovic muffed a routine forehand drop shot into the net to fall behind 5-0. On set point, Mensik slugged an overhead smash for a winner.
The match was scheduled for 3 p.m. but the players didn’t take the court until 8:37 p.m. due to rain and organizers deciding on completing the women’s doubles final.
The South Florida rain began at 12:50 p.m. during the women’s doubles final pitting Mirra Andreeva and Diana Shnaider against Cristina Bucsa and Miyu Kato, with Andreeva and Shnaider leading 3-0 in the first set.
The women’s players returned to the court at 5:30 p.m. after the rain stopped and the courts were readied by court-drying machinery. But rain began minutes later before warmups and the umbrella-toting players left the court again.
The women returned to the court an hour later and resumed play at 6:50 p.m. Andreeva and Schnaider went the distance, prevailing in a third-set match tiebreaker 6-3, 6-7 (5), 10-2.
This story has corrected the spelling to Mensik. A previous version said Mensuk.
AP tennis: https://apnews.com/hub/tennis
Novak Djokovic, of Serbia, plays a shot against Jakub Mensik, of Czech Republic, in the men's singles final match at the Miami Open tennis tournament, Sunday, March 30, 2025, in Miami Gardens, Fla. (AP Photo/Rebecca Blackwell)
Jakub Mensik, of Czech Repbulic, plays a shot to Novak Djokovic, of Serbia, in the men's singles final match at the Miami Open tennis tournament, Sunday, March 30, 2025, in Miami Gardens, Fla. (AP Photo/Rebecca Blackwell)
Jakub Mensik, of Czech Repbulic, plays a shot against Novak Djokovic, of Serbia, in the men's singles final match at the Miami Open tennis tournament, Sunday, March 30, 2025, in Miami Gardens, Fla. (AP Photo/Rebecca Blackwell)
Novak Djokovic, of Serbia, lies on the court after slipping and falling, as he plays Jakub Mensik, of Czech Repbulic, in the men's singles final match at the Miami Open tennis tournament, Sunday, March 30, 2025, in Miami Gardens, Fla. (AP Photo/Rebecca Blackwell)
Novak Djokovic, of Serbia, slips and falls as he plays Jakub Mensik, of Czech Repbulic, in the men's singles final match at the Miami Open tennis tournament, Sunday, March 30, 2025, in Miami Gardens, Fla. (AP Photo/Rebecca Blackwell)
Diana Shnaider, left, and Mirra Andreeva pose with the Butch Buchholz Championship Trophy after defeating Cristina Bucsa, of Spain, and Miyu Kato, of Japan, in the women's doubles final match at the Miami Open tennis tournament, Sunday, March 30, 2025, in Miami Gardens, Fla. (AP Photo/Rebecca Blackwell)
Fans watch the women's doubles final match between Cristina Bucsa, of Spain, and Miyu Kato, of Japan, top, and Diana Shnaider and Mirra Andreeva, at the Miami Open tennis tournament, Sunday, March 30, 2025, in Miami Gardens, Fla. (AP Photo/Rebecca Blackwell)
People walk outside Hard Rock Stadium in front of a rainbow, as rain breaks after delaying play by many hours, at the Miami Open tennis tournament, Sunday, March 30, 2025, in Miami Gardens, Fla. (AP Photo/Rebecca Blackwell)
People ride an escalator into Hard Rock Stadium in front of a rainbow, as rain breaks after delaying play by many hours, at the Miami Open tennis tournament, Sunday, March 30, 2025, in Miami Gardens, Fla. (AP Photo/Rebecca Blackwell)
A crew dries the court after a break in rain that had delayed play by several hours, at the Miami Open tennis tournament, Sunday, March 30, 2025, in Miami Gardens, Fla. (AP Photo/Rebecca Blackwell)
