DUBLIN, April 30, 2025 –KBRA releases a report examining how the recent US tariffs on imported vehicles may indirectly affect European auto ABS transactions. While tariffs may support recovery rates in the US by lifting used vehicle prices, the European market faces a contrasting risk from excess inventory and downwards pressure on used car values. Increased imports—particularly in the battery electric vehicle and hybrid segments—alongside broader trade displacement may weigh on recovery proceeds and elevate residual value risk. This KBRA report also considers the role of consumer fundamentals in shaping credit outcomes across the sector.
Click here to view the report.
Recent Publications
Assessing the Ripple Effect: Tariff Uncertainty Clouds Structured Finance Outlook
Tariffs May Offer a Temporary Boost to U.S. Auto ABS Recoveries