Trump has threatened to levy tariffs as high as twenty percent on imported vehicles from the European Union and twenty-five percent on goods from Mexico and Canada starting January 20, 2025, when he takes the oath of office as United States president. That prospect could shave as much as seventeen percent off the EBITDA, or earnings before interest, taxes, depreciation, and amortization, for both European and American automakers, according to a report from S&P Global. Among brands, Volvo Cars and Jaguar Land Rover would be hit hardest due to the premium pricing of their models, while General Motors and Stellantis would feel the effects from the high volumes of Mexico‑sourced imports. BMW and Mercedes‑Benz would likely face more limited risk. The analysts note that mitigation steps might make tariffs more manageable, but the combination of tariffs, Europe’s CO2 regulations tightening from 2025, and intensified competition from China and Europe could raise downgrade risks, the report states.
