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Trump's tariff threats impact European automakers
(MENAFN) US President Donald Trump's recent tariff threats have caused significant disruptions for European automakers, with the Europe Stoxx 600 automobile and parts index dropping by 4.1 percent, reaching a two-week low. Shares of major automakers also saw steep declines, with Volkswagen, Volvo, Daimler Truck, Porsche, and BMW all losing over 5 percent. French auto parts provider Valeo’s stocks experienced an even sharper drop, nearly 8 percent.
The impact of Trump's tariffs extended beyond the automotive sector, with Germany’s DAX 40 index halting its upward momentum, falling by 2 percent earlier on Monday as trade wars escalated. The fears of tariffs targeting the European Union added to market uncertainty, especially as Trump had previously indicated intentions to impose additional tariffs on products from Canada, Mexico, and China. Despite promising these measures during his presidential campaign, Trump signed an executive order on Saturday imposing 25 percent tariffs on Mexican and Canadian imports and 10 percent on Chinese goods.
Trump's threat to the EU, driven by concerns over a trade deficit with the US, has also raised alarms in European markets. Analysts have warned that the tariffs could negatively impact the revenues of key automakers. Volkswagen’s revenues are expected to be hit by around USD8.2 billion, while Stellantis could see an impact of approximately USD16.4 billion due to the imposed tariffs. These developments underscore the growing trade tensions and the potential for economic strain in the automotive sector.
The impact of Trump's tariffs extended beyond the automotive sector, with Germany’s DAX 40 index halting its upward momentum, falling by 2 percent earlier on Monday as trade wars escalated. The fears of tariffs targeting the European Union added to market uncertainty, especially as Trump had previously indicated intentions to impose additional tariffs on products from Canada, Mexico, and China. Despite promising these measures during his presidential campaign, Trump signed an executive order on Saturday imposing 25 percent tariffs on Mexican and Canadian imports and 10 percent on Chinese goods.
Trump's threat to the EU, driven by concerns over a trade deficit with the US, has also raised alarms in European markets. Analysts have warned that the tariffs could negatively impact the revenues of key automakers. Volkswagen’s revenues are expected to be hit by around USD8.2 billion, while Stellantis could see an impact of approximately USD16.4 billion due to the imposed tariffs. These developments underscore the growing trade tensions and the potential for economic strain in the automotive sector.
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