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BNY warns tighter Western action against China automakers could hit Europe
The note cites White House trade adviser Peter Navarro saying the U.S. is the only major auto market that has kept BYD out, even as the company presses at U.S. borders.
BNY, via strategist Geoff Yu, said tougher Western moves against Chinese automakers could add pressure on Europe’s legacy manufacturers, as trade tensions intersect with changing auto market dynamics. The outlook also flags that U.S.-China competition remains a key risk, with White House senior trade adviser Peter Navarro urging Europe and other Western governments to take stronger action against Chinese automakers. Navarro’s comments, carried in a Politico Europe piece, argue Chinese firms are making aggressive gains abroad while the West’s response has been too weak. BNY said earnings have been supportive for the broader AI-led growth cycle, pointing to U.S. bank and TSMC results as evidence that the core theme is intact. At the same time, the firm cautioned that Europe’s equity appeal is limited by crowded positioning, premium valuations, and what it views as underpriced geopolitical risk.
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