Navigating Uncertainty: A Deep Insight into Tariffs’ Effects on the Automotive Industry

Author

• Gavin J. Gautier, University of MississippiFollow

Date of Award

Spring 4-28-2026

Document Type

Undergraduate Thesis

Department

Finance

First Advisor

Bonnie Vanness

Second Advisor

Violetta Davydenko

Third Advisor

Danielle Ammeter

Relational Format

Dissertation/Thesis

Abstract

The purpose of this thesis is to address the financial, strategic, and external effects caused by tariffs within the automotive industry, with a specific focus on the effects caused by the Section 232 tariffs imposed on aluminum and steel. More Specifically this thesis will examine a comparative analysis of General Motors between 2017 and 2018 during the Section 232 enactment. While traditional studies tend to observe the input-cost effect, my hope is to examine the broader effects at the firm-level, such as inventory shifts, cost management, and risk hedging procedure. Through an evaluation of GM’s 10-K filings, key financial ratios, historical charting, and strategic hedging procedures, this capstone project looks to analyze how GM preserves its profitability by implementing restructuring measures and following a cost absorption strategy to successfully offset the effects during trade uncertainty.

Recommended Citation

Gautier, Gavin J., "Navigating Uncertainty: A Deep Insight into Tariffs’ Effects on the Automotive Industry" (2026). Honors Theses. 3585.
https://egrove.olemiss.edu/hon_thesis/3585