President-elect Donald Trump has long touted tariffs as a tool to help the U.S. get better deals from trading partners. Consumers and corporate purchasers pay these taxes on imported goods and the higher prices make companies (and countries) exporting to the U.

The threat to put tariffs on all imports from Mexico and Canada sent GM shares lower and stoked fears such a move could impact profit margins.

General Motors, Ford and Stellantis shares slid Tuesday after President-elect Trump threatened 25% tariffs on all imports from Canada and Mexico. The move by the new administration would likely stop American car demand in its tracks,

Donald Trump's proposed tariffs could raise car prices, impacting US and European automakers such as General Motors, Volvo, and Jaguar Land Rover.

Both European and American companies are expected to lose out if President-elect Trump imposes duties on imported vehicles

Carmakers in the U.S. and Europe could lose up to 17 percent of their combined annual core profits in a worst-case scenario if the U.S. imposes steep tariffs on Europe and the key U.S. allies of Mexico and Canada,