U.S. President Donald Trump said he would impose a 25% tariff on all imported cars and car parts, causing the three major stock indices on the New York Stock Exchange to close lower.
On the 27th (Eastern Time), the Dow Jones Industrial Average closed down 155.09 points (0.37%) at 40,299.70 on the New York Stock Exchange (NYSE) near the close of trading. The Standard & Poor's (S&P) 500 index fell 18.89 points (0.33%) to 5,693.31, while the Nasdaq Composite index finished down 94.98 points (0.53%) at 17,804.03.
The Nasdaq index plummeted more than 2% the previous day, and the S&P 500 index also fell over 1%.
Investor sentiment weakened due to the Trump-induced tariff war. After announcing the imposition of a 25% tariff on all imported cars and car parts the day before, Trump noted early this morning around 2 a.m. via social media service Truth Social that "if the European Union (EU) and Canada cooperate to harm the U.S. economically, we will impose much larger taxes."
The stocks of the group referred to as the "Magnificent Seven" showed mixed results. Nvidia fell 2.05%. This was influenced by pressure from the U.S. government's restrictions on advanced semiconductor exports to China and environmental and energy regulatory pressure from the Chinese government. Meta and Alphabet also experienced declines of around 1%.
On the other hand, Apple, Microsoft, Amazon, and Tesla were strong. In particular, Tesla saw its stock jump over 7% during trading on expectations of benefiting from the 25% car tariff.
The three major U.S. automakers also showed weakness under tariff pressure. General Motors (GM), which has a particularly large proportion of vehicles sold in the U.S. being assembled in Canada and Mexico, saw its stock drop over 7%. Ford fell 4%, and Stellantis showed a decline of over 1%.