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Global automaker stocks are tumbling Thursday, a day after President Donald Trump announced a 25% tariff on the import of foreign-made cars and auto parts not compliant with the U.S.-Mexico-Canada Agreement (USMCA) .

The levies will take effect "on or after 12:01 a.m." ET April 3. Those on auto parts will begin "no later than May 3."

'Big Three' Automaker Stocks Drop, With GM Leading Declines

The news unnerved investors wary of higher prices of cars, many of which are produced in Canada and Mexico in highly intricate supply chains.

Shares of General Motors ( GM ) are tumbling 6.5% in premarket trading, while those of fellow " Big Three " automakers Ford ( F ) and Jeep and Chrysler maker Stellantis ( STLA ) are falling 2.5% and more than 1%, respectively.

Shares of Japanese automakers Toyota ( TM ) and Honda ( HMC ) are down around 2%. In Seoul trading, Hyundai, which on Monday announced a roughly $21 billion investment in the U.S. earlier, ended down more than 4%, while Volkswagen shares are down 1.5% in German trading.

By contrast, shares of U.S. electric vehicle maker Tesla ( TSLA ) are less than 1% higher. Tesla—whose CEO Elon Musk's work with the Department of Government Efficiency has unnerved some investors and analysts —said in a post on his X social media platform Sunday that "Teslas are the most American-made cars." However, Musk noted in a separate post Wednesday that it is "important to note that Tesla is NOT unscathed here. The tariff impact on Tesla is still significant."

CORRECTION—This article has been updated to reflect the source of an X post.

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