European Stocks Fall as Auto Shares Slide on US Tariff Threats

(MENAFN) European stock markets opened slightly lower on Monday, with losses in the automotive sector weighing on overall performance after US President Donald Trump signaled potential increases in tariffs on vehicles imported from the European Union, according to market reports.

The Euro Stoxx 50 index was down 0.08% at 07:20 GMT, while trading in London was closed due to a public holiday.

Automakers were among the biggest decliners after Trump stated that the EU had not fully met the terms of a previously agreed trade arrangement with Washington. He suggested the bloc had fallen short of its commitments, triggering renewed uncertainty over trade conditions.

Shares of major car manufacturers fell in response, with BMW dropping 2.1%, Mercedes-Benz Group declining 1.9%, and Volkswagen slipping 1.7%, contributing to pressure on the broader index.

The comments came after Trump’s warning on Friday that the EU had not fully implemented elements of a trade deal that had set a 15% tariff level on most European exports, including cars and auto parts, while requiring the EU to expand access for US industrial goods and vehicles.

Despite losses in the auto sector, technology stocks moved higher, supported by continued investor interest in artificial intelligence-related companies. This followed strong momentum in US markets on Friday and gains across Asian equities.

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