The bank warned that the ongoing trade tariffs could weigh heavily on the earnings of automakers and limit investment opportunities in the sector.

This assessment echoes similar concerns raised by Goldman Sachs just days earlier. The US investment bank reduced its 2025 forecast for automobile sales in the US by nearly 1 million units, citing the adverse effects of the tariffs on both production and consumer demand.

Although Trump has periodically adjusted his tariff policies, including temporarily pausing levies on many imports and granting exemptions for certain Chinese products, tariffs on vehicles, steel, and aluminium remain unchanged.

Barclays suggested that the continuing uncertainty surrounding these policies could pose significant challenges for US automakers, especially as they seek to navigate a complex and shifting global market.

--ChannelAfrica--