On March 27, Morningstar equity analyst Lela Sukhin cautioned that if US tariffs remain in place, automakers' valuations could plummet by 20% to 30%. She emphasized, however, that current share prices provide investors with a safety cushion, trading significantly below Morningstar's fair value assessments. Faced with sluggish growth in the European market, European automakers are actively bolstering their presence in the US. Sukhin, nevertheless, foresees a notable uptick in US car prices leading to diminished demand, which will impact these companies' strategies for geographical diversification and business expansion. This will likely exert substantial downward pressure on sales and profitability for European automakers operating in the US market. Additionally, Morningstar anticipates that manufacturers will confront short-term supply chain disruptions and heightened capital expenditures.