1236 GMT - European automakers may face challenges in maintaining U.S. market share if President Trump moves ahead with 25% tariffs on imported autos, says Morningstar equity analyst Rella Suskin. "Most would struggle to pass such tariffs onto consumers or absorb the cost themselves given already thin margins." This could prompt further investments in U.S. manufacturing capacity, as some automakers, such as Volkswagen and Stellantis, have begun doing.However, brands like Audi and Porsche may face added vulnerability due to their limited U.S.-based production, Suskin says. BMW and Mercedes already have substantial U.S. production, but higher tariffs could influence their export strategies if the EU were to retaliate, Suskin adds. BMW and Mercedes both produce and export certain models from the U.S. to Europe. (dominic.chopping@wsj.com)

(END) Dow Jones Newswires

February 19, 2025 07:36 ET (12:36 GMT)

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