Welcome to the Daily 5 report for Thursday, April 3.
As of early afternoon, every automaker tracked by Automotive News saw its stock fall. The Dow Jones Industrial Average dropped nearly 4 percent and other indexes slipped further into the red as the world responded to President Donald Trump's automotive tariffs and the additional reciprocal tariffs of at least 10 percent on nations around the world.
Even though we knew this was coming, it will take several days for this massive economic retrenchment to settle into the collective psyche of the auto industry.
Make no mistake, these tariffs will impact just about every automaker, supplier, dealer, investor, stakeholder and consumer engaged in the world of four-wheel vehicles. Probably two-, three-, six- and multiple-wheeled vehicles, too. Not sure yet about Segways, golf carts or unicycles.
And of course, it's all subject to change without warning depending on how the world responds and how Trump reacts to those responses.
Read more: Live updates on tariff news and impacts
Beyond the ongoing carnage on Wall Street, it didn't take long for job cuts to emerge today, led by Stellantis. The automaker said it is temporarily laying off nearly 1,000 workers in the U.S. as it pauses production at some plants in Canada and Mexico in response to the tariffs. The layoffs affect workers at five plants in Michigan and Indiana, a company spokesperson said in our story by Vince Bond Jr.
In Canada, 25 percent retaliatory tariffs on U.S. imports will target vehicles built in the United States while avoiding U.S.-made auto parts destined for Canadian assembly plants, Prime Minister Mark Carney told reporters in this story from Automotive News Canada. The "carefully calibrated" countertariffs form part of Ottawa's response to U.S. trade actions April 2 that will "rupture the global economy," Carney said.
A few Republicans have begun to push back. Four of them joined Democrats in the Senate on Wednesday passing a measure that would essentially terminate new tariffs on Canada. The bill has an unlikely chance of passing the House. Then today, Sen. Charles Grassley, R-Iowa, joined Sen. Maria Cantwell, D-Wash., to introduce legislation seeking to rein in Trump's ability to impose tariffs. The measure would require congressional approval for new levies within 60 days, Reuters reported. Again, it was a largely symbolic measure designed to send a message and has little chance of moving forward.
Meanwhile, General Motors and Ford Motor Co. both made some newsworthy moves today in response to the tariffs. GM told employees it is moving to increase production of light-duty trucks at its Fort Wayne, Ind., assembly plant, Reuters reported.
Ford announced an employee-pricing-for-all retail program — coupled with a massive ad campaign — to pitch its U.S. manufacturing base.
"There's no question that obviously prices are going to rise as more things come out," Rob Kaffl, Ford's director of U.S. sales, told Automotive News. "We're still trying to understand the impact of the tariffs. We think the opportunity is now to make the offer with our customers, and we'll also have to weigh in what happens with these impacts."
So far, none of Ford's competitors have publicly signaled plans to match the deal. Ford shares weren't spared from Wall Street's sell-off, either.
For more recaps of today's tariff coverage, go here.
That's enough for now. Have a great rest of your day.
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— Philip Nussel, online editor
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