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

A new report from S&P Global indicates that U.S. tariffs on imports from Europe, Mexico, and Canada could reduce annual core profits for carmakers by up to 17%. Premium brands like Volvo and Jaguar Land Rover, along with General Motors and Stellantis, are particularly at risk. The potential tariffs, which could reach 25%, may lead to credit downgrades for these companies. The report highlights that the combined impact of tariffs, stricter emissions regulations in Europe, and increased competition could further strain profits. Starting in 2025, the EU will enforce lower emissions limits for new vehicles, adding pressure on automakers. S&P warns that under a worst-case scenario, some companies could see over 20% of their projected earnings at risk.