Financial markets, especially in the U.S., are getting routed as investors are selling stocks in response to President Trump’s tariff onslaught, which is driving predictions of recession.

As of Monday, the White House shows no signs of relenting in the face of market losses and plummeting approval ratings for Trump. Foreign countries, from Canada and Mexico to the EU and China, continue to talk with the administration about measures that could reverse or mitigate tariffs on their nations. Companies and industries, including the auto industry, are seeking “carve-outs” of the policies as they did in Trump’s first term when smaller tariffs were imposed.

Meanwhile, there is little hope that Congress will act to revoke the president’s use of the National Emergencies Act to impose tariffs. If the U.S. House passed a resolution to revoke his emergency powers, joining the U.S. Senate, the president likely would veto the move, requiring a two-thirds vote to override the veto.

Trump last week announced reciprocal tariffs on imports from about 90 nations, in addition to a 10% across-the-board tariff applied to all imports to the U.S. The president declared the trade imbalance a national emergency and said new taxes are needed to erase a trade deficit between the U.S. and the rest of the world, The move lays waste to every trade agreement the U.S. has negotiated, including by Trump in his first term.

Those taxes are paid by U.S. entities, such as Ford, GM and U.S. parts suppliers relying on imported parts, as well as U.S. units of Honda, Toyota, Nissan and Hyundai, damaging profits and resulting in higher prices paid by U.S. consumers.

The reciprocal tariffs go into effect April 9. The baseline 10% tariff went into effect April 5.

Goods and products that fall under the United States-Mexico-Canada trade agreement are still mostly exempt from tariffs. But automotive exports still will be subject to a tariff that went into effect April 3, while steel and aluminum still will be subject to a previously imposed 25% tariff.

Responses to the tariffs vary, but here’s the state of play as of Monday:

Automaker Actions

• GM is shifting more production of its Chevrolet Silverado and GMC Sierra light-duty trucks to its Fort Wayne, IN, plant, adding approximately 225 to 250 jobs. This move aims to localize production and reduce tariff-related costs.
• Nissan reversed plans to reduce shifts at its Smyrna, TN, plant, maintaining two shifts to increase U.S. production and avoid tariffs on imports from Japan and Mexico. Additionally, Nissan paused new U.S. orders for certain models manufactured in Mexico.  
• Stellantis temporarily halted production at its assembly plants in Windsor, Canada, and Toluca, Mexico, leading to the temporary layoff of 900 U.S. workers in Michigan and Indiana. The company is adjusting operations to align with the new tariff environment.  

• Ford is offering employee pricing to all customers for a limited period, effectively providing discounts to offset potential price increases due to tariffs. This initiative aims to maintain sales momentum in the face of rising costs.
• Volkswagen plans to add an “import fee” to vehicles shipped into the U.S. to offset the tariffs. The company has also paused rail vehicle deliveries from Mexico and is holding Europe-bound shipments at port while assessing the situation.

• Audi is temporarily holding vehicles at U.S. ports. This affects models such as the Q5, which is manufactured in Mexico, as the company evaluates the impact of the new duties.
• Jaguar Land Rover announced a temporary pause in U.S. shipments. This decision is part of the company's strategy to manage the financial implications of increased import charges in the U.S.

Global Responses

• EU leaders convened to formulate a collective strategy against the U.S. tariffs. French Trade Minister Laurent Saint-Martin labeled the tariffs as “aggressive and arbitrary,” advocating for a proportionate EU reaction. Discussions included potential countermeasures targeting American products.
• French President Emmanuel Macron urged major European companies to suspend investments in the U.S. as a form of protest against the tariffs, emphasizing the need for EU solidarity.

• German Chancellor Olaf Scholz criticized the tariffs as an “attack on a trading order that has created prosperity across the globe,” through a system largely shaped by American efforts. Economy Minister Robert Habeck described the tariffs as “the most disruptive tariff increases in 90 years,” warning of potentially “dramatic” consequences. He emphasized the importance of a cohesive European stance, stating that individual countries seeking exemptions would be ineffective.

Japan:

• Prime Minister Shigeru Ishiba expressed strong disappointment over the tariffs and indicated Japan’s intent to negotiate with the U.S. for reductions, acknowledging that results may not be immediate. The Japanese government announced plans to provide financial assistance to affected industries, including autos, and to implement job protection initiatives to mitigate the economic impact of the tariffs.
• The cost of tariffs for the country’s seven biggest car brands could exceed 3.5 trillion yen ($24 billion), Nikkei reported, citing data from UBS Securities. Toyota accounts for half of that, amounting to a whopping 1.8 trillion yen ($12 billion).

China:

• China responded by imposing 34% tariffs on U.S. goods and blacklisting 11 American companies – defense-related companies – demanding the U.S. lift its unilateral tariffs.

Mexico:

• President Claudia Sheinbaum emphasized the importance of adhering to the USMCA to maintain favorable trade terms.

Vietnam:Facing a steep 46% tariff, Vietnam is seeking to negotiate with the U.S. to delay implementation.