Automaker stocks slumped following President Donald Trump’s announcement that he will place 25% tariffs on auto imports.

Industry dealers and analysts are reacting to the news of Trump's 25% tariffs on imported vehicles saying it will dramatically raise costs for all.

For many consumers, buying a new car is already a costly challenge. President Donald Trump has now made it even more financially difficult. Trump announced Wednesday that he wants to impose a 25 percent tariff on imported cars and parts on the theory that a trade war might boost manufacturing jobs in the United States in the long run.