The threat to put tariffs on all imports from Mexico and Canada sent GM shares lower and stoked fears such a move could impact profit margins.

General Motors, Ford and Stellantis shares slid Tuesday after President-elect Trump threatened 25% tariffs on all imports from Canada and Mexico. The move by the new administration would likely stop American car demand in its tracks,

While the reaction in US stocks was muted, global equities were rattled. Markets are wondering if Trump's threats are mainly a negotiating tactic.

Stocks of GM and Ford took a hit, amid concerns that Trump’s plan for tariffs on imports from Mexico and Canada could cut auto sales more than a million cars.

By Joao Manuel Vicente Mauricio, Ankika Biswas and Pranav Kashyap (Reuters) -European stocks fell across the board, led by automakers, as Donald Trump's tariff threat on the United States' largest trading partners prompted worries about another global trade war.