Linamar Corp. (LNR.TO) and Martinrea International Inc. (MRE.TO) were downgraded to Neutral from Outperformer at CIBC Capital Markets.
Analyst Krista Friesen lowered her price target on LNR to $55 from $82, and on MRE to $9 from $14.
Friesen maintained her Neutral rating on Magna International Inc. (MG.TO, MGA) and lowered her target to US$36.50 from US$44.
"While we appreciate that the auto suppliers are trading near multi-year lows, we view the tariffs by the US as an existential threat to the industry," the analyst said in a note to clients.
"Prior to any tariff talk, we had viewed 2025 as a 'run-of-the-mill' challenging year, given production was forecast to be flat Y/Y at best," Friesen said.
"The implementation of tariffs creates significant uncertainty for an industry that has worked to integrate itself since the introduction of the Canada-United States Automotive Products Agreement in 1965, with vehicles crossing the border seven to eight times on average as they are being built."
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