General Motors shares fell by the most in nearly seven years after higher steel and aluminium costs forced the carmaker cut to its earnings outlook.

US President Donald Trump’s decision to impose tariffs on imports of those metals amid his wider, burgeoning trade war are expected to cut into margins, the automaker said on Wednesday, while unfavourable foreign exchange impacts in Latin America have also hurt business expectations.

Shares were down 7 per cent at $36.70 in morning trade, their lowest level in just over two months and the biggest one-day drop since November 2011. The stock is down 10.7 per cent so far in 2018.

By 10.22am local time, trading volume of 10.79m shares had already surpassed all of Tuesday’s trade

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