European carmakers faced significant pressure on the stock markets Thursday as investors responded to U.S. President Donald Trump’s decision to impose a 25 percent import duty on all cars and car parts manufactured outside the United States.
The tariffs mark an escalation in Trump’s ongoing trade war with key U.S. trading partners. His aim is to strengthen the domestic auto industry and push major automakers to shift production to the U.S.
Shares of BMW, Volkswagen, Mercedes-Benz, and Porsche dropped by more than 4 percent in Frankfurt. In Paris, Stellantis saw a 5 percent decline. Stellantis owns several European brands, including Opel, Peugeot, Fiat, Alfa Romeo, and Citroën, as well as American brands such as Chrysler, Dodge, Jeep, and Ram Trucks.
Trump Administration Imposes 25% Duty on Car PartsGerman auto parts supplier Continental fell 2.6 percent, while truck manufacturer Daimler Truck lost 3 percent. The German automotive industry condemned the U.S. tariffs, calling them a “dire signal for free trade.”
The DAX in Frankfurt fell 1.5 percent shortly after trading began, weighed down by steep losses in the auto sector. The Paris Stock Exchange declined by 1.1 percent, while London slipped 0.4 percent.
Meanwhile, the AEX index on the Damrak dropped 0.5 percent to 912.72 points, and the MidKap declined 0.6 percent to 869.76 points.