GM, Ford down after Trump reiterates import-tariff threat

GM, Ford down after Trump reiterates import-tariff threat
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US car manufacturers faced losses on Wall Street on Thursday after President Donald Trump reiterated his plan to implement a 25% import tariff on products from Canada and Mexico just before the market closed.

Investors were alarmed by the comments, causing GM and Ford Motor shares to drop by more than 4%. Both stocks had been performing well earlier but ended the trading session nearly 1% down.

Trump had first announced his intention to impose the tariffs right after his inauguration, targeting goods from Canada and Mexico starting 1 February. Analysts remain uncertain whether the president will follow through on his threat.

The trading day was also dominated by reports on company earnings. The Dow Jones Industrial Average closed 0.4% higher at 44,882.13 points. The broader S&P 500 gained 0.5% to end on 6071.17 points, while the tech-heavy Nasdaq improved by 0.3% to 19,681.75 points.

On Wednesday, the New York stock exchanges had declined after the Federal Reserve decided to keep interest rates unchanged following last year’s reductions.

Facebook parent company Meta reported better-than-expected turnover for the past quarter, resulting in its shares rising by nearly 2%. Tesla’s stock climbed almost 3%, with the company announcing plans to release new, cheaper electric models in the first half of this year. However, despite a positive outlook, Tesla’s quarterly figures fell short of expectations.

Microsoft also released its earnings, but they were less well-received by investors, causing the software giant’s shares to drop by more than 6%.

Courier company UPS saw its shares plummet by 14.1% after releasing unfavourable results.

Chemical company Dow lost over 6% in market value. The company plans to cut 1,500 jobs worldwide to save $1 billion due to weak demand and pressure on margins. It is not yet clear where the job cuts will occur, but Dow has indicated a focus on reducing its workforce primarily in Europe and Asia.


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