Trump's proposed tariffs could 'eliminate all of Detroit Three's profits,' Barclays says – 11/27/2024 at 5:07 p.m.

((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))

November 27 – ** Brokerage firm Barclays says President-elect Donald Trump's proposed 25% tariffs on Canadian and Mexican auto imports, if implemented, could eliminate all Three Detroit profits – General Motors

GM.N, Ford FN and Stellantis STLAM.MI.

**Automakers typically operate on relatively low profit margins and a 25% tariff on vehicles and parts from Mexico and Canada would be a significant cost to absorb – Barclays

** Brokerage firm identifies Aptiv Plc APTV.N , American Axle & Manufacturing AXL.N and Autoliv ALV.N as the suppliers most exposed and likely to be most affected by the proposed tariffs

** Barclays, however, says it does not expect final tariffs to reach 25%.

**The brokerage estimates that GM is most exposed to this move, as approximately 30% of its North American production is based in Mexico

**After GM, Stellantis has about 29% and Ford has about 16% of its production based in Mexico – brokerage

** Shares of GM rose 2.1% and Ford shares rose 0.6% in morning trading, while publicly traded shares of Stellantis rose 1.5%.