Foreign automakers may pull their cheapest cars from U.S. without USMCA - report

Foreign automakers have warned the U.S. administration they may stop offering their cheapest models in the U.S. if the U.S.-Mexico-Canada Agreement (USMCA) is not renewed or is weakened, The Wall Street Journal reports. Manufacturers say existing tariffs on parts, cars, steel and aluminum make low-cost models unprofitable without tariff-free manufacturing under USMCA. The development risks reducing availability of affordable vehicles and could pressure auto-sector revenues and margins, with potential knock-on effects for consumer spending and related equities on the US SP 500. Automakers and suppliers are lobbying to preserve trade terms to avoid higher costs or model withdrawals. Near-term market impact is conditional on policy outcomes, making effects uncertain for the broad index.