Barclays downgraded the U.S. autos and mobility sector to "negative" on Tuesday, warning that persistent tariffs under President Donald Trump’s trade policy could weigh heavily on automaker earnings and investment strategies.
Barclays on Tuesday downgraded its outlook on the U.S. autos and mobility sector from "neutral" to "negative," citing concerns that President Donald Trump's tariff policies could place significant pressure on automakers’ earnings and hinder future investments.
The assessment echoes similar warnings from Goldman Sachs, which last week lowered its 2024 forecast for U.S. auto sales by nearly one million units. While President Trump has paused certain levies and provided temporary exemptions for some Chinese products, tariffs on automobiles, steel, and aluminum remain in effect.
"In an increasingly difficult macroeconomic and regulatory environment, making a near-term investment case for the autos sector is becoming more challenging," Barclays analyst Dan Levy stated. "Auto tariffs appear to be persistent, and current valuations do not fully reflect the associated risks."
Stock Downgrades and Sector Impacts
Barclays downgraded General Motors (GM) from "overweight" to "equal weight," noting that nearly half of GM’s vehicles sold in the U.S. are assembled outside the country, including its entry-level electric vehicles (EVs) produced in Mexico. In contrast, Barclays expressed a "modest" preference for Ford (F), due to a larger share of its vehicles being manufactured domestically.
Several auto technology firms were also downgraded, with Barclays citing potential delays in the adoption of advanced technologies due to pricing pressures. Companies affected include Aptiv (APTV), Mobileye Global (MBLY), and Visteon Corp (VC).
In premarket trading, shares of GM, Aptiv, Mobileye, and Visteon declined between 1% and 3%, while Ford shares slipped 0.31%.
Revised Ratings and Price Targets
Barclays updated its ratings and price targets for several major firms in the sector:
Barclays' revised outlook reflects broader market unease over the durability of tariff policies and their long-term implications for the U.S. automotive industry.
Iran has warned it will shift to a “fully offensive” military posture if efforts to reach a permanent peace deal with the U.S. fail, se...
Start your day informed with AnewZ Morning Brief. Here are the top news stories for the 18th of August, covering the latest developments....
At least two people were killed, including the alleged shooter, and a number were injured in a shooting at a high school in the southern Phili...
At least 11 people were killed in Israeli strikes on southern Lebanon on Saturday, among the deadliest since a June ceasefire. Meanwhile, Qatar denied holding Iranian pilots. It said it had found the remains of one pilot after an airspace violation and had contacted Iran to coordinate a handover.
U.S. President Donald Trump says Washington is not seeking an extension of its memorandum of understanding with Iran, claiming the U.S. already controls the Strait of Hormuz through its naval blockade.
A wildfire in Croatia driven by strong winds descended on the tourist town of Omis overnight, engulfing houses, forcing about 1,000 people to evacuate to safety and injuring dozens, fire brigade and health officials said on Friday.
South Korea's presidential Blue House said on Monday it was reviewing U.S. President Donald Trump's comments on scaling back joint military drills. It added that it hoped a favourable relationship between Washington and Pyongyang could lead to meaningful talks.
Residents of villages in eastern Indonesia hit by a deadly earthquake that killed at least 54 people were awaiting aid on Monday as rescuers prepared to comb through collapsed buildings in search of people trapped beneath the rubble.
Start your day informed with AnewZ Morning Brief. Here are the top news stories for the 18th of August, covering the latest developments.
At least two people were killed, including the alleged shooter, and a number were injured in a shooting at a high school in the southern Philippine city of Zamboanga.
U.S. Immigration and Customs Enforcement (ICE) is considering a scheme to help local police officers cover the legal and financial risks of making immigration arrests under President Donald Trump’s crackdown.
Russia said its air defences downed 180 drones over the Moscow region overnight, with 620 drones reportedly targeting the area, according to Moscow Mayor Sergei Sobyanin.
The economic losses from a powerful earthquake that struck Colombia last week are expected to reach 30 trillion pesos ($9.58 billion), Colombia's President Abelardo De La Espriella said on Monday.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment