(Reuters) - U.S. President Donald Trump said late on Wednesday the United States will effectively charge a 25% tariff on all cars not made in the country and added that the new tariffs on cars and light trucks imported into the United States will be permanent.

Shares of General Motors and Ford fell in extended trade after Trump's announcement, while shares of Tesla initially fell then bounced after the President said tariffs could be neutral for Tesla.

COMMENTS:

CHUCK CARLSON, CHIEF EXECUTIVE OFFICER, HORIZON INVESTMENT SERVICES, HAMMOND, INDIANA

    "I've been kind of suspect on all the tariff talks in terms of what is going to last, what is a negotiation, what is going to be pulled at the last minute. My initial reaction was this tariff might have some legs."

    "There's probably going to be some exemptions or modifications for some of the U.S. automakers... I could see the U.S. automakers getting some exemptions based on their supply chains. But I think he may want to see how this works out as opposed to stopping it in two or three days. That's my initial reaction, that this particular tariff might have legs in terms of its longevity."

(Compiled by the Global Finance & Markets Breaking News team)