GM deal with workers would add Sierra pickup assembly to Canadian plant despite US tariff threat

The Zacks Domestic Auto industry shows resilience, with new-vehicle sales remaining healthy. Affluent consumers support demand, while tax benefits may boost purchases. EV market recovery is uneven. Companies like General Motors (GM), PACCAR (PCAR), Ford (F), and Harley-Davidson (HOG) are highlighted. The industry's Zacks Rank is #67, indicating strong near-term prospects. GM raised its full-year adjusted free cash flow guidance to $9.5-$11.5 billion. PCAR expects Parts sales growth of 3-5% in 20

U.S. President Trump announced a 50% tariff on Canadian vehicles, parts, and trucks, effective January 1, doubling the current 25% rate. Automakers like Ford, GM, Stellantis, Toyota, and Honda face higher costs on key models. Canadian-built vehicles made up 6% of U.S. sales in 2025, per Barclays. Industry executives hope for a deal before the deadline, as tariffs could disrupt the U.S. automotive supply chain.

U.S. President Trump imposed 50% tariffs on Canadian vehicles and auto parts, effective January 1, doubling previous 25% tariffs. Automakers like Ford, GM, Stellantis, Toyota, and Honda face added costs on key models. Canadian-built vehicles account for 6% of U.S. sales, per Barclays. Industry executives hope for a deal before the deadline.

Canada's retaliation tariffs on U.S. imports, effective September 8, will impact General Motors (GM), Ford (F), and Stellantis (STLA). GM faces $2.5B–$3.5B in gross tariff expenses, while Ford, with a -4.4% net margin and 461% debt-to-equity ratio, is most exposed. Stellantis has lost 53.8% year-to-date. The S&P 500 Automobiles index has fallen ~19% year-to-date.

President Trump announced a 50% tariff on Canadian auto imports starting in 2027, doubling the 25% rate GM has faced since 2025. GM's stock fell 1% on the news, as investors noted the company absorbed $3.1B in tariff costs in 2025, less than its $5B forecast. GM expects $2.5B-$3.5B in tariff costs for 2026 but has raised profit guidance twice this year.

The U.S. National Highway Traffic Safety Administration (NHTSA) has escalated its investigation into General Motors' eBoost brake-by-wire system, which may affect over 1.1 million vehicles. The probe, now at its highest level, follows reports of brake failures, including 22 crashes and 6 injuries. GM maintains the issue does not pose an unreasonable safety risk, but a recall may be imminent.