Auto ETFs holding Ford Motor Co. (F) and General Motors Co. (GM) dipped Thursday, despite President Donald Trump granting the automakers a month-long exemption from 25% tariffs on Canada and Mexico. While both Ford and General Motors are American companies, the automakers manufacture vehicles in Canadian and Mexican factories.
The First Trust Nasdaq Transportation ETF (FTXR) dropped roughly 1% midday Thursday; the fund is the biggest holder of both Ford and General Motors with more than 13% allocated to the two companies. FTXR has been under pressure since tariffs against Canada and Mexico were first announced. Performance over the past month declined nearly 14%.
Source: etf.com
Shares of Ford declined over 1.75% while General Motors sank over 2.5% midday Thursday.
The iShares U.S. Manufacturing ETF (MADE) fell more than 1.5% at midday. The fund was dragged down by its holdings in manufacturing companies that will get hit by the Canadian and Mexico tariffs, which target steel and aluminum imports.
The First Trust S-Network Future Vehicles & Technology ETF (CARZ) also sank, falling nearly 2.5% midday. The fund primarily invests in the technology and components suppliers for automobiles.
In his joint address to Congress, the president said the country would “have growth in the auto industry like nobody’s ever seen. Plants are opening up all over the place. Deals are being made like I’ve never seen.”
“That’s a combination of the election win and tariffs,” he added.
Markets, seemingly tired over the trade war, took a leg lower Thursday, even after announcements from the White House paused all tariffs on most Mexican imports. The Vanguard S&P 500 ETF (VOO) dropped close to 2%, while shares of tech-heavy Invesco QQQ Trust (QQQ) declined more than 2.4%.
etf.com’s Markets Monitor shows that Mexican markets dropped 2.25%, while Canadian markets dipped nearly a quarter of a percentage point.
Trump’s tariffs have dragged down markets over the last month. According to etf.com data, VOO performance over the past month has fallen by just over 4%, as markets have been on a rollercoaster ride since tariffs were first announced at the start of February.