New York, Jan 20, 2026, 10:09 EST — Regular session
Shares of Ford Motor Company dipped roughly 0.7% to $13.51 in Tuesday’s morning session, trailing the broader market as trade-war concerns weighed on automakers. The stock had ended Monday at $13.60.
The shift followed U.S. President Donald Trump’s threat to impose new tariffs on imports from eight European nations, reigniting tensions that have rattled global risk appetite since last spring. “Hopes that the tariff situation has calmed down for this year have been dashed for now,” noted Holger Schmieding, chief economist at Berenberg. 1
Why this matters now: tariffs hit the auto sector quickly due to tangled supply chains and parts crossing borders multiple times. That can push prices up and squeeze demand. As U.S. markets reopened after a long weekend, traders had to absorb the fresh political risk premium all in one go.
Detroit’s big three all slid. General Motors dropped around 2.2%, Stellantis edged down 0.8%, and Tesla dipped close to 2.7% early on.
The tariff threat stemmed from Trump’s bid to take control of Greenland, proposing a 10% levy starting Feb. 1 and potentially increasing later in the year if no agreement is reached. European leaders are considering retaliation, with an emergency meeting in Brussels set for Thursday. U.S. Treasury Secretary Scott Bessent dismissed concerns of a trade war as “hysteria,” expressing confidence the sides would “find a solution.” 2
Ford shareholders are less focused on one specific duty line and more on which costs will pop up next — whether in components, logistics, or currency fluctuations — and how fast those expenses will hit prices.
Autos tend to be a high-beta play. When investors turn cautious, the sector can drop even absent any company-specific news, especially amid ongoing doubts about global growth and consumer spending on big-ticket items.
Several portfolio managers pointed to uncertainty as the bigger problem. Discussions about tariffs often stall decisions across the board — from orders and production plans to dealer inventory — even before any policies are finalized.
Ford’s quarterly earnings report, scheduled for Feb. 10 after the market closes, is the next major event on the calendar, according to Wall Street Horizon. Investors will focus on updates regarding demand, pricing, and any supply-chain challenges extending into 2026. 3
There is, however, a clear downside risk: if tariff threats turn into actual measures and Europe retaliates, automakers could see costs rise while demand softens. In such a case, margin pressure usually emerges before any drop in sales volume becomes apparent.
Traders are focused on a few clear events: follow-up moves from the White House, Europe’s emergency summit set for Thursday, and the Feb. 1 tariff rollout. After that, all eyes will be on Ford’s Feb. 10 earnings—marking the first major company update on how management views the evolving trade risks.
