Tesla, Inc. ( TSLA ) stock is trading lower amid overall market weakness, possibly due to uncertainty around tariffs.

The Details: On Monday, the Wall Street Journal reported that President Donald Trump and his administration may narrow upcoming tariffs to exclude certain industries.

The White House is expected to announce a range of reciprocal tariffs on April 2, a day sometimes referred to as “Liberation Day.” The administration is anticipated to exclude certain sectors, such as semiconductors and automobiles, from these tariffs, though it has not yet been announced which sectors will be exempt.

Treasury Secretary Scott Bessent explained that the administration is focusing on imposing tariffs on the “dirty 15.” The “dirty 15” is a name given to 15% of countries with a persistent trade imbalance with the U.S. The administration has not clarified what countries are a part of the “dirty 15,” but the secretary said the countries make up most of the U.S.’s foreign trade.

Market uncertainty may stem from the possibility that exemptions from the upcoming tariffs could significantly benefit any sector excluded from them by preventing rising costs. Tesla, an electric vehicle manufacturer, relies on international markets to produce its products, and an exemption for the electric vehicle sector would likely boost Tesla’s profits.

What Else: Canada’s Transport Minister Chrystia Freeland announced that the country has frozen all rebate payments to Tesla, totaling C$43 million ($30.08 million). Furthermore, she said she would make sure the company is excluded from future electric vehicle rebate programs.

The decision was made in response to U.S. tariffs, described by the minister as “illegitimate and illegal.”

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TSLA Price Action: At the time of writing, Tesla stock is trading 6.04% lower at $270.68, according to data from Benzinga Pro.

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