General Motors' stock took a hit due to Trump's 25% tariff on Mexico and Canada. This tariff, imposed in 2018, was part of a broader trade policy aimed at protecting US industries.¹ The tariffs on steel and aluminum imports from Canada and Mexico were later lifted in May 2019, but the initial impact had already affected General Motors' stock.
The tariffs led to increased costs for General Motors, as the company relies heavily on imports from Canada and Mexico. This, in turn, affected the company's profitability and stock performance.
It's worth noting that the trade war policies implemented during Trump's administration have had a broader impact on the US economy. According to estimates, these policies have reduced long-run GDP by 0.2%, the capital stock by 0.1%, and employment by 142,000 full-time equivalent jobs.