ALERT: WE HAVE *NEVER* SEEN ANYTHING LIKE THIS
(Reuters) – Goldman Sachs (GS) on Thursday cut its estimate for automobile sales in the U.S. for this year by nearly 1 million units, as President Donald Trump’s tariffs make it more expensive to buy a vehicle.
While Trump on Wednesday halted reciprocal tariffs on countries, barring China, for 90 days, the announcement did not appear to affect duties on autos, steel and aluminum, leading to concerns around increased costs for the sector.
“We believe the tariffs as proposed will raise the cost of both importing and manufacturing vehicles in the U.S. by at least a low to mid single digit thousand dollar level on average,” said Goldman Sachs analysts led by Mark Delaney.
However, it will be hard for the auto industry to completely pass on this additional cost to customers, especially with softening demand, the brokerage added.
The Wall Street giant estimates net prices of new…
