Ford Stock Drops 3.9% on New Canada Tariffs

Ford's stock fell 3.9% to $13.86 in morning trading after President Trump announced a 50% tariff on all Canadian imports of cars, trucks, auto parts, and steel, effective January 1, 2027, sending shockwaves through the US auto sector. The White House framed the move as an incentive for domestic production, stating US-made vehicles would face zero tariffs, but Ford found little relief due to its heavy reliance on cross-border North American supply chains. Canada has signaled plans for retaliatory tariffs, raising the prospect of a prolonged trade conflict that could pressure margins on both sides of the border. Morgan Stanley recently cut its price target on Ford to $14 from $15, dampening Wall Street enthusiasm despite strong second-quarter results. General Motors and Stellantis also fell, confirming the decline reflects broad industry risk rather than Ford-specific issues. The S&P 500 dipped 0.3% while the Dow rose marginally.