Auto stocks continued their downward slide on Monday as the sector, heavily exposed to tariffs, looks for a bottom.

Domestic automakers like General Motors (GM), Stellantis (STLA), Ford (F), and Tesla (TSLA) all slipped on Monday as fallout from Trump’s 25% auto tariffs weighed heavily on a sector looking for a lifeline. Tariffs on auto parts are poised to kick in on May 3, with little relief coming on excluded parts until the Commerce Department weighs in.

Read more: What Trump's tariffs mean for the economy and your wallet

While Ford and Stellantis have announced employee pricing for all customers as a tactic to counter the price hike narrative, other automakers, including Volkswagen (VOW3.DE), are looking at adding import fees to their cars, and Porsche is studying the option as well.

Volkswagen’s Audi brand is storing cars at port that arrived after April 2 as it attempts to to figure out its tariff exposure, and Britain’s Jaguar Land Rover is halting shipments altogether as it puts together its post-tariff strategy.

"Automakers are swiftly reacting to the announced tariffs by trimming lineups, delaying production, holding vehicles at ports, offering employee discounts, and implementing sourcing strategies. Some are signaling price hikes,” said KPMG US autos sector leader Lenny LaRocca to Yahoo Finance. “They must tackle immediate tariff impacts while trying to stiff-arm the long-term compounding volatility of several factors.”

A new report from auto research firm Telemetry finds that the US will lose 1.8 million new car sales due to tariffs this year, which would have a significant impact. Cox Automotive’s Kelley Blue Book estimated that 15.8 million new cars and light trucks were sold in the US last year.

Echoing Telemetry, S&P Global Mobility expects US light-vehicle sales to fall to between 14.5 million and 15 million units annually, from 16.0 million vehicles it estimates were sold in 2024.

GM, which is more exposed to tariffs due to its operations in Mexico and Canada versus its rival Ford, was downgraded to Underperform from Market Perform at Bernstein, with analysts concerned lost sales due to tariffs and decline in consumer confidence will hit GM’s earnings and free cash flow.

“In the near term, it’s hard to see a path out of this,” Bernstein wrote.

Wedbush’s Dan Ives believes the impact on the auto market will be even more severe than the 1.8 million units in lost sales.

“We believe the price impacts from this head scratching tariff slate could result in demand destruction of 15%-20% in 2025 for new auto purchases alone based on our estimates,” Ives wrote in a note Sunday night. “The tariffs are a debacle of epic proportions for the auto industry … The winner in our view from this tariff is NO ONE.”