From Morningstar: 2025-04-03 12:15:00

On April 2, US President Donald Trump confirmed a 25% import tariff on automobiles and parts, excluding USMCA-related items. The auto industry won’t face reciprocal tariffs. Morningstar estimates a 20-30% negative impact on fair values for non-moat auto OEMs due to these tariffs, affecting BMW and Mercedes, which export half their US production.

European auto OEMs like Stellantis, Mercedes, BMW, and Volkswagen are hit hardest by US import tariffs, while Ferrari and Porsche are exposed but have pricing power to offset impacts. Ferrari, with a wide moat, is better positioned than Porsche to weather the effects of tariffs on financials.

Morningstar does not own shares mentioned in the article. The information provided is for educational purposes only and should not be considered an invitation to buy/sell securities. It’s advised to consult a financial professional before making investment decisions.



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