Trump tariffs would be 'tremendously inflationary' for automakers
President Donald Trump is considering 25% tariffs on Canada and Mexico that would take effect next month on February 1. RBC Capital Markets Global Autos analyst Tom Narayan joins Morning Brief to discuss the potential impact these import taxes could have on the automotive industry. Narayan indicates that while Trump's proposed tariffs were "expected," he finds it "interesting" that implementation was pushed to February. He emphasizes that if implemented, these tariffs would have severe consequences for the US auto industry. "The now president ran on a campaign of bringing inflation down. A car purchase is one of the most highest-profile purchases the consumer can make. We're already at record high auto pricing ," Narayan explains, adding if this were to happen it would be "tremendously inflationary and not something that is just fixed overnight." He notes that shifting production to the US would be "tremendously costly," questioning "to who's benefit," while describing the tariffs as having "a destructive impact" on both the automotive industry and its jobs. In this environment, Narayan recommends General Motors (GM), Ferrari (RACE), and Tesla (TSLA) as the sector's top stock picks. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This post was written by Angel Smith
