1205 ET - Trump's plan to impose a 25% tariffs on all vehicles imported to the U.S. could lead to a $10,000 price hike on imported vehicles, BofA Securities analysts say in a research note. But this would only happen if the auto makers pass on the tariffs in full to consumers on impacted vehicles. The analysts don't expect consumers would absorb the price increases in full in the current environment, with the auto makers projected to be more likely to sell vehicles at breakeven until they rebalance their production footprint. There would still be a meaningful $4,500 increase in prices, the analysts anticipate. Overall, the higher umbrella could be positive for less impacted auto makers such as Ford, putting them in a position that would allow them to raise prices and/or gain market share, the analysts add.(sabela.ojea@wsj.com; @sabelaojeaguix)
(END) Dow Jones Newswires
March 27, 2025 12:06 ET (16:06 GMT)
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