Catenaa, Tuesday, April 15, 2025- US auto shares fell on Tuesday despite President Trump delaying auto tariffs after Barclays downgraded the sector to “negative”.
Barclays on Tuesday downgraded US autos and mobility sector to “negative” from “neutral”, warning that President Donald Trump’s tariffs could pressure automakers’ earnings and curb investments.
Following the downgrade, shares of Ford were down by 1.90% and General Motors by 1.85%, while auto tech companies such as Aptiv were down by 1.04%, Mobileye by 3.90%, and Viseteon by 2.92%.
President Donald Trump has signaled a possible delay to auto tariffs, on Monday adding to market relief after suspending levies on some consumer tech, even as he insists there are “no exceptions” and forges ahead with plans for new tariffs on the pharmaceutical and chip sectors.
Trump insisted that duties would soon cover phones, computers, and other major electronics. Investors are now watching closely to see which products and companies might win temporary exemptions.
Last week Goldman Sachs cut its estimate for automobile sales in the US for this year by nearly 1 million units. Trump’s tariff policy has been constantly evolving, and while he temporarily paused levies on most imports and exempted certain Chinese products, duties on autos, steel, and aluminum remain unchanged.
Barclays downgraded General Motors to “equal weight” from “overweight”, saying that nearly half of the company’s vehicles sold in the U.S. are assembled outside the country, with its affordable EVs being made in Mexico.
Barclays “modestly” prefers Ford as a greater proportion of its vehicles are assembled in the US.
Barclays also downgraded stocks of auto technology companies Aptiv, Mobileye Global and Visteon Corp, saying automakers could push back on adding more technology due to pricing concerns.
