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Morning Brief hosts Brad Smith and Madison Mills highlight three stories to watch for.
President Trump's push for a 25% tariff on autos is sending shockwaves through the European and American auto industries, with European stocks falling and automakers like Mercedes-Benz (MBGYY) facing potential major losses. American car stocks are mixed today, with General Motors (GM) and Ford (FORD) lower while Tesla (TSLA) trades higher.
Additionally, President Trump threatens larger tariffs on the EU and Canada, and US stock futures (ES=F, NQ=F, YM=F) point to a lower open as investors digest the news of Trump's tariffs.
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
First up, liberation day coming early, at least for the car makers, as the president pushes ahead with that 25% tariff on autos. We're seeing European stocks falling today as a result. Shares of European automakers slumping, with Porsche and Mercedes-Benz group facing a potential $3.7 billion blow from the new tariffs on imported cars. Meanwhile, American car makers mixed today. You've got GM shares falling. You've also got Ford shares moving around a bit this morning. At the moment, they are lower. Meanwhile, Tesla pushing higher. Some see the company as a winner from auto tariffs with its large factories in California and Texas turning out all the cars it sells in the US.
Plus on the trade talk front, President Trump threatening sweeping trade levies on the EU and Canada if they join forces against the US, expanding a trade war and triggering threats of retaliation. Meanwhile, the president said he would consider lowering tariff rates imposed on China to secure Beijing support for sale of TikTok's US operations to an American company.
And meantime, in the US, stock futures are pointing to a lower open today as investors grapple with Trump's tariffs, the impact of corporate earnings, and its impact on inflation and the overall labor market.
