European Car Stocks Plummet as Trump Announces New Tariffs

Milan: Shares in European carmakers sank on Thursday after President Donald Trump’s announcement that he would impose 25% tariffs on all vehicles and foreign-made auto parts imported into the United States as of April 2. The auto sector as a whole experienced a significant decline, shedding 3.3% in market value.

According to Ansa News Agency, the announcement had a pronounced impact on several major European car manufacturers. Stellantis saw a drop of 5.3%, marking one of the most significant declines among its peers. Other carmakers also recorded sharp losses, with Mercedes experiencing a 5.5% decrease, BMW falling by 4.5%, Volkswagen down by 4%, and Porsche declining by 4.9%. In contrast, Renault was comparatively less affected, with its shares only down by 0.6%.

The announcement of these tariffs by President Trump has raised concerns among European automakers regarding the potential impact on their sales and operations in the United States. The new tariffs are expected to increase the cost of exporting vehicles and parts to the U.S., potentially leading to higher prices for consumers and a subsequent decrease in demand. The industry will be closely monitoring the situation as the April 2 implementation date approaches.