Shares of Lear Corp (NYSE:LEA) tumbled 7.5% to $90.03 during Thursday’s session following the announcement of a 25% tariff on imported cars and key auto parts by President Donald Trump.

What To Know: As a leading supplier of automotive seating and electrical systems, Lear heavily relies on a global supply chain for raw materials and components. The tariffs, set to take effect in April and May, could significantly impact the company's cost structure and profitability.

Read Also: Trump’s 25% Auto Tariff Raises Will Put Pressure On Interest Rates, Says Economist

As a supplier, Lear operates on thin margins and may struggle to pass these costs onto automakers already grappling with higher production expenses.

With roughly half of a typical U.S.-built car's components sourced from abroad, higher tariffs on imported parts could squeeze Lear's margins, forcing cost-cutting measures or price increases that could hurt demand.

What Else: Goldman Sachs analysts noted that auto suppliers are particularly vulnerable, as their contracts often fix pricing for extended periods, limiting their ability to offset cost inflation.

Further, a potential decline in vehicle sales due to price hikes—estimated between $5,000 and $15,000 per vehicle—could lead to lower demand for Lear's products, compounding financial pressure on the company.

Read Also: US GDP Growth Upwardly Revised In Q4, Trade Deficit Slightly Narrows As Auto Exports Soar In February

How To Buy LEA Stock

By now you're likely curious about how to participate in the market for Lear – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of Lear (NYSE:LEA), which is trading at $89.69 as of publishing time, $100 would buy you 1.11 shares of stock.

According to data from Benzinga Pro, LEA has a 52-week high of $146.19 and a 52-week low of $86.28.