1213 ET - U.S. auto sales volumes in June were down, suggesting that the pull forward of demand that the sector saw when the Trump administration launched its tariff campaign earlier this year has come to an end, Bernstein analysts say in a research note. The industry's 2Q earnings will be under pressure as automakers have not materially raised their prices, yet are facing a full quarter of tariff costs, the analysts say. They continue to expect sales to slow in the back half of the year. That expectation is seemingly confirmed by automakers' production cuts, the analysts say. This will force the automakers into a tight spot for the rest of the year, as they will have to stimulate sales by eating even more into margins, or start passing higher costs onto consumers, the analysts say. (dean.seal@wsj.com)

(END) Dow Jones Newswires

July 16, 2025 12:13 ET (16:13 GMT)

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