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Domestic carmakers' shares fell Thursday morning after auto-specific tariffs took effect at midnight.

General Motors ( GM ) shares were recently down more than 3% from Wednesday's close, while Ford ( F ) shares retreated nearly 3%. Electric vehicle manufacturers were also hit, with Lucid Group ( LCID ) shares falling about 2% and Rivian ( RIVN ) off 4%. Tesla ( TSLA ) shares dropped more than 5% a day after its stock seesawed following disappointing deliveries numbers and reports that CEO Elon Musk may take a step back from his work with the Trump administration.

Economists have warned that a 25% tariff on cars and auto parts would increase prices by thousands of dollars . Some analysts said manufacturers' would struggle to pass along higher production prices without depressing demand.

Stellantis ( STLA ), the company behind Fiat and Chrysler, will pause production at plants in Mexico and Canada and assess the tariffs, according to CNBC, which reported that 900 "US-represented employees" would be temporarily laid off. Its shares were recently down more than 5%. (Read Investopedia's coverage of today's markets here .)

The auto tariffs took effect hours after President Donald Trump unveiled a package of "reciprocal" tariffs aimed at what he described as other nations' unfair trade practices.

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