Carmakers Face Uncertainty as Tariffs and Earnings Collide
Volkswagen’s sales dropped 16% in the US in the second quarter.
Photographer: Krisztian Bocsi/BloombergInvestors in auto firms, which sit squarely in the bullseye of US President Donald Trump’s trade war, are about to find out if earnings back up the sector’s scorching rebound from this year’s lows.
A gauge of stocks of US carmakers and suppliers has soared more than 40% from its tariff-fueled April depths, handily beating the S&P 500 Index’s 26% gain. Meanwhile, the MSCI World Auto and Components Index has climbed 30% in that period, outpacing the MSCI World Index’s 25% advance.