Good morning and welcome back to Wall Street Breakfast. It's Thursday, March 27th. I'm Rina Sherble,

filling in for Julie Morgan. Wall Street's major averages slumped in Wednesday's trade ahead of the Trump administration's

new series of tariffs on the auto industry.

The tech-heavy NASDA closed down 2% as traders remained averse to riskier tech stocks.

Every member of the Magnificent 7 retreated, led by Nvidia down 5.6%, and Tesla down 5.5%. The Dow and SMP 500 also both

closed down. Daniel Jones, investing group leader of crude value insights, told Seeking Alpha,

it was a relatively brutal day for market participants. A lot of this pessimism seemed to be the result of

uncertainty regarding the tariff situation that has embroiled the globe. President Donald Trump announced

new tariffs on automobile imports on Wednesday. A 25% tariff will be imposed on all vehicles,

not manufactured in the U.S. effective on April 2nd.

The tariffs will initially start at 2 and a half percent and gradually increase to 25%.

The tariffs will apply to both imported cars and foreign auto parts brought into the U.S.

While the administration wants to bring back more manufacturing into the U.S., analysts

warn it could take years and tens of billions in capital to completely reorient the supply chain

to North American production. Detroit automakers and foreign automakers have been warning for weeks

that tariffs could hurt the industry overall and lead to significantly higher car prices in the U.S. Wedbush Securities analyst Anna Ives put a number on the potential

pain. In our view, these initial tariffs, if they hold in their current form, would be a

hurricane-like headwind to foreign and many U.S. automakers and ultimately pushed the average

price of cars up $5,000 to $10,000,

depending on the make, model, price point he wrote following the announcement.

RBC analyst Tom Narian said the tariffs as set will be destructive to the auto industry

and a potential disaster at the 25% level if it were to come to that.

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