Fitch Ratings shared in its latest report on Monday that the United States tariffs have "negative" and "uneven" credit impact on automakers across the globe.
"The 25% tariffs imposed on auto imports into the US will raise prices and put downward pressure on demand," Fitch commented, adding that it anticipates carmakers to hike prices "across the board," even though US President Donald Trump's trade policies are likely to affect each brand and model differently.
"Some automakers might struggle to raise prices sufficiently to cover the 25% tariffs and will have to make painful adjustments to production and sales plans," Fitch mentioned. It was further stated that with the rising prices for imported cars, customers could turn to US-made vehicles. However, it was also noted that many cars made in the US "do not directly compete with imports."
