BofA raised the firm’s price target on Sonic Automotive (SAH) to $85 from $72 and keeps a Buy rating on the shares. The firm lowered its North American auto production estimate to 16.1M from 16.7M to reflect plant downtime and a material increase in Chinese imports to Mexico.

Retailers from auto shops to athletic brands have indicated that tariff costs will likely be passed on to the consumer. Target and Best Buy, two of the country’s largest retail chains, warned their prices will increase after President Donald Trump’s 25% tariffs on goods from Mexico and Canada went into effect on Tuesday,

The US auto industry is breathing a sigh of relief after President Trump agreed to give the industry a one-month exemption from the 25% tariffs implemented on Canada and Mexico.