Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
S&P: CN Car Makers May Face Greater Secondary Effects from US Tariff Policies
Recommend 36 Positive 56 Negative 31 |
||||
|
||||
|
Although US tariffs only have a moderate impact on Chinese car makers with credit ratings, the secondary effects are more difficult to predict and may even be more influential, according to S&P Global. S&P Global assumed that Chinese automakers could withstand an additional 10% tariff imposed by the US, and the 25% US tariff on Mexico had a limited credit impact. Yet, it believed that the automotive industry would face tariffs that could quickly and severely deteriorate, potentially affecting the ratings of car manufacturers. In addition, secondary effects may appear more pronounced in cases like the US imposing up to a 60% tariff on Chinese imports, which would gravely impact the Chinese economy. If China's economic growth falls below 2%, Chinese consumers will significantly reduce car purchases, damaging the ratings of Chinese car makers and suppliers. AAStocks Financial News |
||||
Copied to Clipboard
 |
||||
