Potential impacts on auto sector if Trump wins - concerns about tariffs and environmental regulations

From Investing.com: 2024-07-21 05:01:02

With the U.S. presidential election approaching, JPMorgan analysts are warning of potential impacts on the auto sector if Trump wins. Concerns include additional tariffs and changes to environmental regulations. If Trump is re-elected, tariffs on imported autos may rise uniformly, affecting Japanese automakers like Subaru and Mazda, but less so for Honda and Nissan.

JPMorgan’s assessment suggests Mazda and Subaru would be hit hard by increased tariffs due to high import ratios. However, Honda and Toyota may fare better with higher local production rates. A potential USMCA agreement revision in 2026 could worsen the impact on Honda and Nissan if tariff exemptions are terminated.

Under a Trump presidency, JPMorgan predicts a relaxed stance on greenhouse gas regulations, offering potential relief to automakers by lowering compliance costs. Despite possible benefits, this move could have significant environmental implications. A Trump win could bring major changes to the auto sector, posing risks through increased tariffs and mixed consequences from eased environmental regulations.



Read more at Investing.com: What a Trump presidency might mean for the auto sector By Investing.com