[https://globalnews.ca/news/11013600/donald-trump-canadian-cars-tariff/](https://globalnews.ca/news/11013600/donald-trump-canadian-cars-tariff/)
So the raw steel and aluminum that goes into US automotive manufacturing has announced tariffs, [currently scheduled to go into effect for March 12](https://www.reuters.com/markets/commodities/new-steel-aluminum-tariff-rates-take-effect-march-12-executive-orders-show-2025-02-11/), and the President is now threatening a 100% tariff on Canadian cars, and presumably car parts as well. The supply chain is deeply integrated and much worse than a 25% increase in prices caused by this, the entire North American auto sector runs on just in time 24 hour stockpiles. As with the recent de minimis exemption removal causing a giant backlog at US customs, this would immediately halt North American production lines.
This would affect every North American automaker, not just Ford, GM, and Stellantis, but also Honda, Toyota, and others which operate NA supply chains.
The market hasn't reacted much yet, probably because it's thought to be bluster as it was last week, but I expect we will at least get a dramatic Executive Order and subsequent selloff with an eleventh hour order rescindal again. I made a bit on General Motors puts on the way up and down last time, so I'll try it again.
My position: Bought slightly OTM puts on GM for March 7 and 14.