The auto sector was mixed ahead of an announcement later on Wednesday from the White House detailing the latest tariff policy. 

U.S. automakers Tesla (TSLA) -5.7%, General Motors (NYSE:GM) -2.9%, and Rivian Automotive (RIVN) -2.3%, Ford Motor (NYSE:F) -0.2% were all lower on concerns that tariffs will create supply chain snarls and higher costs that cannot all be passed on to consumers. Research firm Cox Automotive forecast that 700,000 fewer vehicles will be sold in the U.S. this year due to tariff volatility.

Meanwhile, some auto supplier stocks broke higher in afternoon trading on reports that the new round of tariffs will only apply to manufacturers. Adient (ADNT) +3.2%, Holley (HLLY), +2.7%, Visteon (VC) +2.3%, BorgWarner (BWA) +1.7%, Lear (LEA) +1.3%, and Aptiv (APTV) +1.2% were all in positive territory. Almost 60% of the parts in vehicles assembled in the United States are imported, which complicates the issue.

Looking ahead, some analysts expect a short-term flurry of tariff headlines and splashy manufacturing announcements before a return to normalcy. However, there is also concern that broader macroeconomic pressures could keep the industry at a standstill.