S&P warns Trump's tariffs could cut carmakers' profits by 17%

S&P Global reports that U.S. tariffs on imports from Europe, Mexico, and Canada could reduce combined core profits for carmakers by up to 17%. Premium brands like Volvo and Jaguar Land Rover, along with General Motors and Stellantis, are most at risk. President-elect Donald Trump plans to impose a 25% tariff on imports from Canada and Mexico, citing border issues. This move may conflict with existing free-trade agreements and could have significant impacts on European automakers. S&P warns that the combination of tariffs, stricter emissions regulations in Europe starting in 2025, and increased competition could lead to credit downgrades for several automakers. The worst-case scenario includes tariffs of up to 25% on imports, putting substantial profits at risk.