Goldman cuts US auto sales estimate by nearly 1 million units due to tariffs

While Trump connected Wednesday halted reciprocal tariffs connected countries, barring China, for 90 days, the announcement did not look to impact duties connected autos, alloy and aluminum, starring to concerns astir accrued costs for the sector.

"We judge the tariffs arsenic projected volition rise the outgo of some importing and manufacturing vehicles successful the U.S. by astatine slightest a debased to mid azygous digit 1000 dollar level connected average," said Goldman Sachs analysts led by Mark Delaney.

However, it volition beryllium hard for the car manufacture to wholly walk connected this further outgo to customers, particularly with softening demand, the brokerage added.

The Wall Street elephantine estimates nett prices of caller vehicles successful the U.S. volition emergence by astir $2,000 to $4,000 implicit the adjacent 6-12 months arsenic automakers relationship for tariff-related costs.

Goldman Sachs present expects U.S. car income of 15.40 cardinal units successful 2025, compared with its erstwhile estimates of 16.25 cardinal units. It lowered estimates for 2026 income by 1.1 cardinal to 15.25 cardinal units.

The concern slope besides lowered its estimation for planetary car accumulation this twelvemonth to 88.7 cardinal units from 90.4 cardinal units earlier. Global accumulation estimates for 2026 were chopped to 90.7 cardinal units from 92.6 million.

Among stocks, the brokerage chopped its standing connected Ford's (F) shares to 'neutral' from 'buy', citing aggravated contention internationally, anemic user request and higher costs from tariffs.

The automaker past week announced discounts crossed aggregate models, arsenic it leans connected its steadfast inventory which exceeds manufacture average, boosting income earlier terms hikes.

Shares of Ford fell astir 5% successful greeting trading, portion GM (GM) declined 5.2%. Stellantis slumped 11.8% successful the U.S.

(Reporting by Abhinav Parmar successful Bengaluru; Editing by Leroy Leo)