Wall Street slips following Trump’s latest tariffs, despite solid economic data

New York (AP) – Wall Street fell on Thursday after obtaining opposite trends, as president Donald Trump’s recent escalation creates the winners and losers among car shares.

S&P 500 decreased by 0.3 % after drifting between small gains and losses several times during the day. Better data on the economy also helped support the market. The Dow Jones industrial rate decreased 155 points, or 0.4 %, and the Nasdaq compound decreased by 0.5 %.

General Motors drowned by 7.4 % for one of the most severe losses on the market after Trump announced 25 % definitions on imported cars. Ford Motor decreased 3.9 %.

Even American automobile companies that sell vehicles in the country can feel the pain of these definitions because their supply chains are spread throughout North America. Trump says he wants more manufacturing within the United States.

“There is still a lot of unknown, but if this remains in place, there will be some pain for digestion,” according to the UBS analyst Joseph Spac.

Among the uncertainty how the United States government will determine how to apply definitions to the parts compatible with the free trade agreement faced by the United States, Mexico and Canada, but they are not fully made within the United States. Tracking the parts can be difficult, according to a plumb.

The drowning of car manufacturers outside the United States. In Seoul, the Hyundai 4.3 % fell. In Tokyo, Honda Motor decreased by 2.5 %, and the Toyota Motor lost 2 %.

But the US electric car makers, Revyan and Tesla, have stood much better. They are looking forward to facing less pressure than Trump’s tariff because more of their production occurs in the United States.

Rivian gathered by 7.6 %, and Elon Musk Tesla added 0.4 % after compensating a greater and larger gain.

Companies that can benefit from drivers who choose to buy new cars also rise higher. Among the retailers of cars, Autozone has gained 4 %, and the O’Reillly Automotive increase by 3.1 %. Carmax, which sells used cars, rose 2.5 %.

Expectations are high for stock markets all over the world to remain shaky with the approaching date of April 2 to the tariff. This is what Trump called “Liberation Day”, when he puts the customs duties designed with commercial partners in the United States. In each case, he said that the “mutual” tariff will coincide with the burden in other places in the United States, including things like taxes with added value.

Hopes are still high that Trump may eventually choose more targeted or more moderate tariffs that are more painful for the global economy more than fear. But even if he did so, all talking about definitions made us already consumers and companies we feel more cautious and pessimistic. If this sour mood convinced them to back down from their spending, it may harm the economy.