Trump's Trade Deal With Japan A Tax On Americans — Economist Says, 'Not Remotely Optimistic' US Auto Companies Will Gain As Toyota And Honda Stocks Rally
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 25 2025
0mins
Should l Buy GM?
Source: Benzinga
Trade Agreement Analysis: Economist Justin Wolfers critiques President Trump's trade deal with Japan, arguing it effectively raises tariffs on American consumers from 2% to 15%, contrary to the perception of a beneficial negotiation.
Impact on Automakers: The trade deal has led to a rally in Japanese auto stocks like Toyota, while American automakers face significant tariff-related costs, with companies like Tesla and General Motors warning of financial challenges due to these tariffs.
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Analyst Views on GM
Wall Street analysts forecast GM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GM is 82.06 USD with a low forecast of 48.00 USD and a high forecast of 100.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
16 Buy
1 Hold
1 Sell
Strong Buy
Current: 79.820
Low
48.00
Averages
82.06
High
100.00
Current: 79.820
Low
48.00
Averages
82.06
High
100.00
About GM
General Motors Company designs, builds and sells trucks, crossovers, cars and automobile parts and provides software-enabled services and subscriptions worldwide. The Company's segments include GMNA, GMI, Cruise and GM Financial. Its GM North America (GMNA) and GM International (GMI) develop, manufacture and/or markets vehicles under the Buick, Cadillac, Chevrolet and GMC brands. The Company provides automotive financing services through its General Motors Financial Company, Inc. (GM Financial) segment. Its Cruise segment is engaged in the development and commercialization of autonomous vehicle technology. Its software-enabled services and subscriptions, including OnStar, its advanced driver-assistance systems (ADAS), including Super Cruise driver assistance technology, and its end-to-end software platform. The Company is also focused on investing in electric vehicles (EVs) and AVs, software-enabled services and subscriptions and new business opportunities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Policy Background: Trump claimed that the revoked scientific finding lacked factual and legal basis, asserting that it “severely damaged the American auto industry” and criticized existing EV promotion laws as “mandates,” which could lead to significant price increases for consumers.
- Consumer Impact: The EPA alleged that the repeal of the finding would result in average cost savings of over $2,400 per vehicle, although this could negatively affect EV sales, especially after the federal tax credit of $7,500 was eliminated last year.
See More
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- Market Reaction: According to Cox Automotive, EVs peaked at 10.3% of the new vehicle market in September, just before federal incentives ended, but sales plummeted afterward, indicating a direct impact of policy changes on consumer demand for electric vehicles.
- Industry Opposition: Automakers like Tesla oppose the EPA's decision, arguing that reversing the endangerment finding undermines the regulatory framework that supports investments in EVs, potentially harming consumer choice and economic benefits while affecting the integrated North American automotive sector.
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See More
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- Decline in EV Sales: Following the removal of federal tax credits, EV sales plummeted in October, dropping from 10.3% market share in September, highlighting a disconnect between consumer demand and policy support that may hinder future market growth.
- Automaker Responses: Ford has expressed support for a unified national standard, arguing that current emissions regulations do not align with consumer choices, reflecting the automotive industry's divisions over environmental policies, particularly between EVs and traditional vehicles.
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See More
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See More
