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.
Ismail Omar Guelleh has been re-elected for a sixth term with 97.8% of the vote, according to state media, extending his nearly three-...
Kazakhstan and Armenia are moving to deepen bilateral ties as shifting dynamics in the South Caucasus reopen long-blocked transport routes and crea...
Australia and Singapore have agreed to deepen cooperation on energy security as global fuel markets come under strain from disruption linked to the...
Israeli and Lebanese envoys are set to meet in Washington on Tuesday in a rare U.S.-driven diplomatic effort to halt escalating violence between...
Myanmar’s newly installed president, Min Aung Hlaing, has said his government faces major challenges and must work to restore the country&rsq...
Ismail Omar Guelleh has been re-elected for a sixth term with 97.8% of the vote, according to state media, extending his nearly three-decade hold on power in the small but strategically significant East African nation.
Kazakhstan and Armenia are moving to deepen bilateral ties as shifting dynamics in the South Caucasus reopen long-blocked transport routes and create new economic opportunities.
Australia and Singapore have agreed to deepen cooperation on energy security as global fuel markets come under strain from disruption linked to the conflict in the Middle East.
Israeli and Lebanese envoys are set to meet in Washington on Tuesday in a rare U.S.-driven diplomatic effort to halt escalating violence between Israel and the Iran-backed Hezbollah movement in Lebanon.
Israeli Prime Minister Benjamin Netanyahu says he has given an instruction for Israel to begin peace talks with Lebanon that would also include the disarming of Hezbollah.
Amid fragile calm, António Guterres urged constructive U.S.- Iran talks, while Pope Leo XIV warned violence is spreading. Lebanon's President said an Israeli strike killed 13 security personnel in Nabatieh.
Iranian Foreign Minister Abbas Araghchi and U.S. Vice President JD Vance have arrived in Islamabad for talks aimed at easing regional tensions, as Pakistan hosts the discussions. Meanwhile, Lebanon and Israel are set to hold rare negotiations in Washington next Tuesday.
Memorial events were held in Tehran’s main squares on Wednesday (8 April) to mark the 40th day since the killing of former Supreme Leader Ayatollah Ali Khamenei, who died during U.S.-Israeli attacks on 28 February.
Dubai has restricted foreign airlines to one daily flight to its airports until 31 May due to the Iran crisis, raising fears of significant revenue losses for Indian carriers, industry letters show.
Ismail Omar Guelleh has been re-elected for a sixth term with 97.8% of the vote, according to state media, extending his nearly three-decade hold on power in the small but strategically significant East African nation.
Australia and Singapore have agreed to deepen cooperation on energy security as global fuel markets come under strain from disruption linked to the conflict in the Middle East.
Donald Trump’s flagship plan for post-war Gaza has come under scrutiny after reports that its financing is falling short of expectations, claims firmly rejected by the White House-backed Board of Peace.
A charity co-founded by Prince Harry in honour of his late mother, Princess Diana, is suing him for libel at the High Court in London, according to a court record published on Friday (10 April).
The European Union and Washington are nearing an agreement to coordinate the production and security of critical minerals, Bloomberg News reported on Friday (10 April).
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment