The newly imposed 25% auto tariff threatens to disrupt the global automotive industry, with analysts warning of sharp price increases and declining sales.

Goldman Sachs estimates that imported vehicle prices could rise by $5,000 to $15,000, while even U.S.-built cars could see cost hikes of $3,000 to $8,000 due to foreign-made parts.

Here's what analysts have predicted so far:

  • According to JPMorgan's Akira Kishimoto, Japanese automakers could face a potential hit of 4.46 trillion yen (about $29.44 billion), with Nissan Motor Co. Ltd. (NSANY  ), Mazda Motor Corp. (MZDAY  ) and Subaru (FUJHY  ) among the most vulnerable due to their reliance on imported vehicles. Toyota Motor Corp (TM  ) remains JPMorgan's top pick, given its resilience and strong fundamentals, while Suzuki Motor (SZKMY  ) and Isuzu Motors (ISUZY  ) are also favored among mid-tier manufacturers.
  • RBC Capital Markets' Tom Narayan warns that German automakers like Mercedes-Benz Group (MBGYY  ) and BMW Group (BMWKY  ) are at high risk, though potential retaliatory tariffs from Europe could deter further escalation. Tesla Inc (TSLA  ) may benefit due to its U.S.-based production, while Ferrari NV (RACE  ) is expected to pass costs onto its high-end buyers.
  • JPMorgan autos analyst Ryan Brinkman has slashed price targets for major U.S. automakers, cutting General Motors Co (GM  ) by 17% to $53 from $64, Ford Motor Co (F  ) by 15% to $11 from $13, and Ferrari by 12% to $460 from $525, citing heightened earnings risk.
With uncertainty around auto demand and the potential for sales fluctuations, investors remain cautious as the industry assesses the economic impact of these sweeping tariffs.