1305 GMT - U.S. auto tariffs were expected, but they're still a negative for the earnings momentum of manufacturers, JPMorgan analyst Jose M Asumendi writes. President Trump confirmed the 25% tariff on cars imported from Europe, with the duties accounting for most of JPMorgan's 25% earnings cut to 2025 estimates across German carmakers and Stellantis. The bank's earnings cut doesn't include costs related to moving production or supplier content to the U.S. from Mexico, ramp-up costs, additional fixed costs or pricing measures. When it comes to imports from Mexico and Canada, JPMorgan is working on the assumption of a 25% tariff on the non-U.S. content within the United States-Mexico-Canada Agreement, but it's not yet clear which components will be subject to the tariff. (dominic.chopping@wsj.com)
(END) Dow Jones Newswires
April 03, 2025 09:05 ET (13:05 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.