“European and American automakers could lose up to 17 percent of their combined annual core profits if Trump’s U.S. imposes tariffs on cars from Europe, Mexico and Canada.”, — write: epravda.com.ua
European and American automakers could lose up to 17 percent of their combined annual core profits if Trump’s U.S. imposes tariffs on cars from Europe, Mexico and Canada. This is stated in the S&P Global report, which also warns of a possible reduction in the credit ratings of companies, writes Reuters. Premium carmakers Volvo and Jaguar Land Rover, which mainly produce cars in Europe, as well as General Motors and Stellantis, which make significant volumes of cars in Mexico and Canada, are at the greatest risk due to tariff increases, the S&P report said. In a worst-case scenario for automakers, the U.S. could impose 20 percent tariffs on passenger car imports from the EU and the U.K., as well as 25 percent tariffs on imports from Mexico and Canada.Advertisement: In that case, according to an analysis by S&P, GM, Stellantis, Volvo and Jaguar Land Rover risk losing more than 20% of forecast adjusted EBITDA in 2025.Advertisement: The risk is from 10% to 20% for Volkswagen and Toyota, and less than 10% for BMW, Ford, Mercedes-Benz and Hyundai. We will remind: Donald Trump, who will take office as the president of the USA on January 20, 2025, has promised to introduce additional tariffs on all imports from Canada, Mexico and China immediately after the start of his term. American motorists should brace for higher gas prices due to plans by the new Trump administration to raise tariffs on imports from Canada and Mexico. Mexico will be ready to take similar measures in response if the US imposes tariffs on its goods.
