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. (OTC: NSANY), Mazda Motor Corp. (OTC: MZDAY) and Subaru (OTC: FUJHY) among the most vulnerable due to their reliance on imported vehicles. Toyota Motor Corp (NYSE: TM) remains JPMorgan's top pick, given its resilience and strong fundamentals, while Suzuki Motor (OTC: SZKMY) and Isuzu Motors (OTC: ISUZY) are also favored among mid-tier manufacturers.
- RBC Capital Markets' Tom Narayan warns that German automakers like Mercedes-Benz Group (OTC: MBGYY) and BMW Group (OTC: BMWKY) are at high risk, though potential retaliatory tariffs from Europe could deter further escalation. Tesla Inc (NASDAQ: TSLA) may benefit due to its U.S.-based production, while Ferrari NV (NYSE: 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 (NYSE: GM) by 17% to $53 from $64, Ford Motor Co (NYSE: F) by 15% to $11 from $13, and Ferrari by 12% to $460 from $525, citing heightened earnings risk.