Trump’s tariffs could cost automakers up to 17% of their combined profits: S&P
Automakers in Europe and the United States might lose up to 17% of their combined annual core earnings if the United States applies tariffs on imports from Europe, Mexico, and Canada, according to S&P Global, which warned of possible credit rating downgrades.
Premium automakers such as Volvo and Jaguar Land Rover, which manufacture mostly in Europe, and General Motors and Stellantis, which build big volumes of vehicles in Mexico and Canada, are the most vulnerable to the potential of higher tariffs, according to S&P.
President-elect Donald Trump announced Monday that he will put a 25% tariff on goods from Canada and Mexico unless they crack down on drugs and people crossing the border, a move that appears to violate the three countries’ free trade agreement.
Analysts and experts are concerned that the tariffs will be more detrimental to European automakers than any direct levies on EU imports.
