(Bloomberg) -- Shares of automakers Ford Motor Co. and General Motors Co. declined after the U.S. Commerce Department recommended a crackdown on imported aluminum and steel that could make sourcing raw materials for their vehicles costlier.
Ford fell as much as 2.2 percent and GM fell as much as 1.3 percent as of 1:01 p.m. Friday in New York trading. Both automakers reversed gains after Commerce Secretary Wilbur Ross proposed a 24 percent global tariff on steel shipments coming into the U.S. and a 7.7 percent duty on aluminum imports.
Expectations for pricier raw materials contributed to Ford’s forecast in January that profit will decline this year. The automaker made a big bet a few years ago on aluminum by choosing to use the lighter-weight metal for the bodies of its lucrative F-Series pickups and biggest sport utility vehicles. GM has projected 2018 adjusted earnings per share will be in line with last year’s result.
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