U.S. automakers are facing significant uncertainty due to ongoing tariff discussions as President Trump's trade war intensifies. As the industry awaits a clearer macroeconomic picture, companies like General Motors and Ford are postponing critical investment decisions to avoid potential losses. Credit analysts at S&P Global Ratings warn about the multibillion-dollar impacts of prolonged tariffs on trade with Canada and Mexico, alongside levies on steel and aluminum. The risks extend to future vehicle development and strategic product launches, which may further diminish U.S. competitiveness against Chinese auto manufacturers.
As they await more clarity, they’re pausing or delaying huge investment decisions, increasing the risk they’ll fall behind faster-moving Chinese rivals.
Prolonged tariffs on trade with Canada and Mexico, plus additional levies on steel and aluminum imports, would deliver a multibillion-dollar hit to U.S. automakers.
If U.S. tariffs became permanent, the automaker would have to consider moving plants. But for now, it's holding off on such decisions until the macroeconomic picture is clearer.
Delaying a makeover of the F-150, its biggest money-maker, would be extraordinary given Ford's strategy of adding more hybrids and electric vehicles.
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