2228 GMT - Jefferies assesses what President-elect Trump's tariff threat means for car dealerships and the auto aftermarket, and concludes that it's not good news. Tariffs could lead to significantly higher retail pricing of vehicles and parts coming from China, analyst John Campbell says. That would hurt underlying demand. And given that consumer confidence remains fragile globally, car dealers and aftermarket suppliers may struggle to pass on cost inflation to customers, Jefferies says. That could squeeze their profit margins. "Whilst we feel some of this may be posturing on the part of the President, it remains a risk to both sectors," Jefferies says. It has an underperform call on ARB, and hold calls on Bapcor, Eagers Automotive and Peter Warren Automotive.(david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
January 16, 2025 17:28 ET (22:28 GMT)
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