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Car Stocks Tumble After Latest Trump Tax on Trade - Barron's

1. Trump announced 25% tariffs on all imported cars and key parts. 2. Analysts predict tariffs may completely wipe out Ford's profits. 3. UAW supports tariffs as a win for workers and communities. 4. Ford makes 80% of cars sold in the U.S. domestically. 5. Initial stock prices drop for Ford and other automakers.

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FAQ

Why Very Bearish?

The tariffs could eliminate Ford's profits, impacting stock valuation. Historical tariffs have adversely affected automaker profitability.

How important is it?

The article covers tariffs directly affecting Ford's profitability and market performance, leading to significant investor concern.

Why Short Term?

Immediate market reactions are evident, with stock prices declining quickly. Future impacts depend on consumer demand in response to potential price increases.

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