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.
Energy integration between Azerbaijan and Europe, along with opportunities to increase gas supplies was discussed during Energy Minister Parviz Shahba...
A court in Ankara has ordered regulators on Wednesday to block access to Grok, the artificial-intelligence chatbot built into Elon Musk’s X platform...
The Russian Prosecutor General's Office has declared Yale University 'an undesirable' organization on its territory, accusing the American institution...
Start your day informed with AnewZ Morning Brief: here are the top news stories for 9th July, covering the latest developments you need to know....
Israeli Prime Minister Benjamin Netanyahu said on Wednesday that his meeting with U.S. President Donald Trump focused primarily on efforts to secure t...
A court in Ankara has ordered regulators on Wednesday to block access to Grok, the artificial-intelligence chatbot built into Elon Musk’s X platform, after it allegedly generated insulting replies about President Recep Tayyip Erdogan — a criminal offence in Türkiye.
The Russian Prosecutor General's Office has declared Yale University 'an undesirable' organization on its territory, accusing the American institution of attempting to destabilize the country and of training Russian activists to oppose the Kremlin.
Start your day informed with AnewZ Morning Brief: here are the top news stories for 9th July, covering the latest developments you need to know.
Israeli Prime Minister Benjamin Netanyahu said on Wednesday that his meeting with U.S. President Donald Trump focused primarily on efforts to secure the release of hostages held in Gaza. He also reiterated his commitment to dismantling Hamas's military and governing capabilities.
Australian researchers have pioneered a low-cost and scalable plasma-based method to produce ammonia gas directly from air, offering a green alternative to the traditional fossil fuel-dependent Haber-Bosch process.
A deadly mass shooting early on Monday (7 July) in Philadelphia's Grays Ferry neighbourhood left three men dead and nine others wounded, including teenagers, as more than 100 shots were fired.
European Commission President Ursula von der Leyen urged stronger sanctions and defence support for Ukraine as the EU's 18th sanctions package against Russia nears approval.
Archaeologists have uncovered a 3,500-year-old city in northern Peru that likely served as a key trade hub connecting ancient coastal, Andean, and Amazonian cultures.
The United States has rescinded licensing restrictions on ethane exports to China, allowing shipments to resume after a temporary halt and signalling progress in efforts to ease recent trade tensions.
Shipments of antimony to the United States have jumped to more than 3,800 tonnes in five months via Thailand and Mexico, customs data show, as buyers find back-door routes around Beijing’s export ban on critical minerals bound for the U.S.
From launching 25 % duties on Mexican goods in February to unveiling a 50 % levy on imported copper on Monday, U.S. President Donald Trump has fired off a rapid-fire series of tariff moves that has jolted financial markets and unsettled global supply chains.
Russia has confiscated 3.9 trillion roubles (about $50 billion) in company assets since 2022, signalling a decisive shift towards a “fortress Russia” economic model, the Kommersant business daily reported on Wednesday.
Maritime security teams from Greece’s Diaplous and Britain’s Ambrey began a high-risk operation on Wednesday to evacuate the 22-strong crew of the Greek-operated Eternity C, after a Houthi drone-and-speed-boat assault off Yemen on Monday killed four sailors and wounded two.
A court in Ankara has ordered regulators on Wednesday to block access to Grok, the artificial-intelligence chatbot built into Elon Musk’s X platform, after it allegedly generated insulting replies about President Recep Tayyip Erdogan — a criminal offence in Türkiye.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment