Automakers to Take $30-B Tariff Hit to Profits: Moody’s

Tariff deals between the White House and foreign governments are trickling in, but the net effect of President Donald Trump’s various trade wars is hammering the bottom lines of major automakers, Pras Subramanian reported for Yahoo Finance.

Moody’s said tariffs would hit the profit margins of automakers by 100–150 basis points.

“Global carmakers, explicitly or implicitly, indicated U.S. tariffs will cut their [2025] operating profitability by more than $30 billion,” Moody’s Ratings said in a report.

“Though the companies’ disclosure parameters differed, the guidance points to a tariff impact equivalent to more than one-fifth of the operating profit the same companies generated in 2024.”

Moody’s said tariffs would hit profit margins by 100–150 basis points. And with third-quarter earnings season approaching, more disclosures are expected.

The guidance on tariff impact incorporates the framework trade agreements between the U.S. and the European Union, as well as with Japan. While these deals provide some stability, Moody’s noted that negotiations between the U.S., Mexico, and Canada remain uncertain at best.