Based on mix of imported and domestic steel used last year by GM and Ford, Goldman Sachs believes that each company could take a $1 billion dollar hit as a result of sizeable tariffs proposed by President Donald Trump last week.

The tariffs would see an extra 25% tacked on to the price of imported steel and aluminum, which is highly important in the automotive industry. Styled as a way to help fight the US's trade deficits, the idea was particularly odious to the US's NAFTA neighbors, Canada and Mexico.

Since Trump's initial tweet, though, he has since softened his stance, claiming that favorable NAFTA negotiations could convince the White House to give these countries a break.

GM, after the initial tariff threat, released a statement stating that its steel was largely domestic, which some viewed as an effort to help protect its stock.

Stock prices for GM and Ford both fell, though, by 8.5% and 2.8% respectively, on Monday morning.

[source: CNBC]