American Carmakers Face Credit Pressure as Trump’s Tariffs Near

Bond investors are getting a little more concerned about the outlook for automakers that could see their bottom lines hit by US tariffs.

The extra yield that bondholders get for owning investment-grade car bonds instead of Treasuries has widened about 0.2 percentage point since the end of January. Automakers’ bonds, like debt in general, are seeing their prices rise, but they’re lagging the broader universe of high-grade bonds, where spreads have widened just 0.08 percentage point, according to Bloomberg index data.