0718 GMT - U.S. tariffs open up a 16% downside to 2025-2026 EBIT across the automakers, led by Porsche, Stellantis and Mercedes-Benz, Citi analysts write. Between Europe, Canada, and Mexico, European manufacturers export around 1.3 million cars into the U.S. with a combined revenue stream of around 70 billion euros, it says. A 25% tariff applied to all imports poses a significant gross cost increase. However, with offsets from much lower transfer prices on which tariffs are charged, likely higher prices for U.S. sales, a change in mix towards higher priced models, and dealer and other cost reductions, Citi thinks the net EBIT impact could potentially be in the region of 10 billion euros over 2025 and 2026. (dominic.chopping@wsj.com)
(END) Dow Jones Newswires
April 03, 2025 03:18 ET (07:18 GMT)
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