Key Takeaways
Shares of Europe’s largest carmakers fell sharply today after US President Donald Trump pledged to impose new tariffs on several European countries amid a dispute over Greenland.
The Stoxx Automobiles and Parts index was trading about 2% lower on Monday at 2 pm ET after paring steeper losses earlier in the session.
Germany’s Volkswagen, BMW, and Mercedes-Benz Group were down between 2.5% and 3%. Shares of Porsche fell more than 3%.
In Milan, Ferrari slipped about 2.2%, touching a 52-week low, while Stellantis was last seen around 1.8% lower.
The selloff followed Trump’s announcement that the US plans to impose a 10% tariff on imports from the UK, Denmark, Norway, Sweden, France, Germany, the Netherlands, and Finland starting February 1.
Trump said the levy would rise to 25% from June 1. The move is tied to his renewed push to bring Greenland, a self-governing Danish territory, under US control.
In response, European leaders said early Monday the European Union is preparing up to €93 billion in retaliatory tariffs if the US moves ahead with the 10% levy on European countries.
The automotive sector is viewed as particularly vulnerable due to its highly globalized supply chains and heavy reliance on cross-border manufacturing, including significant exposure to North America.
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