Shares in some of Europe's biggest carmakers plunged on Monday after U.S. President Donald Trump imposed new tariffs of 25% on goods from Mexico and Canada and 10% on imports from China, raising concerns about possible duties on EU imports as well.
Volkswagen (ETR:VOWG_p) and Stellantis (NYSE:STLA), which have major operations in Mexico and are particularly vulnerable to tariffs, both fell about 6%, the biggest decliners among their peers.
Volvo (OTC:VLVLY) Cars, Mercedes Benz (ETR:MBGn), BMW (ETR:BMWG) and Porsche were all down between 3.4% and 5.2% by 0843 GMT.
French auto parts supplier Valeo (EPA:VLOF) slumped 7%.
The European auto and parts index fell 3.4% to its lowest in more than two weeks, leading declines among other sectoral indexes on the broader STOXX 600 Europe, which fell 1.3%.
Analysts and pundits worry that tariffs on Mexico could hurt European automakers and their suppliers more than direct tariffs on EU goods.
"We believe around 8 billion euros ($8.2 billion) of VW's revenue is affected by the tariffs and around 16 billion euros of Stellantis' revenue," analysts at investment bank Stifel wrote in a note.
They estimate the full impact of the tariffs is around 12% of Volkswagen's EBIT in 2025 and 40% of Stellantis'.
Volkswagen said on Sunday it is counting on talks to avoid a trade conflict.
JPMorgan analysts said in a note that they expect automakers to provide commitments to the U.S. government on jobs and vehicle production in the U.S. versus Mexico and Canada this week.
Source: Investing.com
European stocks have opened higher as a bit of political calm enters the market. The Stoxx 600 Index was up 0.6% in its third session of straight gains. Retailers led the rally as Inditex shares jump...
Asia-Pacific markets opened mostly higher Wednesday ahead of key August inflation data from China. The mainland's August consumer price index is expected to fall 0.2% from the previous year, accordin...
US stocks edged higher on Tuesday, with the three major averages up around 0.1%, as investors continued to bet on a Federal Reserve rate cut next week. Markets are also awaiting the BLS's preliminary...
European stocks edged higher on Tuesday, extending gains into a second session, with the STOXX 50 up 0.2% and the STOXX 600 advancing 0.5%. Investors weighed a fresh round of corporate news while keep...
Asian stocks rose on Tuesday as positive sentiment on Wall Street ahead of an expected Fed rate cut spilled over into regional trading. Equities in Japan and South Korea rose in morning trading, whil...
European stocks have opened higher as a bit of political calm enters the market. The Stoxx 600 Index was up 0.6% in its third session of straight gains. Retailers led the rally as Inditex shares jumped after the Zara-owner said it has seen a...
Japanese shares rose on Wednesday, tracking Wall Street gains, as traders bet U.S. labor market weakness would prompt a Federal Reserve rate cut next week. The Nikkei 225 rose 0.87%, or 378.38 points, to end at 43,837.67. Traders see a Fed rate...
Silver prices broke through $41 per ounce on Wednesday (September 10), holding near a 14-year high as speculation of an interest rate cut by the US Federal Reserve mounted. On Tuesday, the US Bureau of Labor Statistics reported that the economy...
The United States (US) Bureau of Labor Statistics (BLS) will publish the 2025 preliminary benchmark revision to the Establishment Survey Data on...
Russian forces attacked a thermal power plant in the Kyiv region as part of an overnight attack, Ukraine's Energy Ministry said on Monday,...
European shares finished higher on Monday, while French stocks also rose as investors stayed calm in the run-up to a no-confidence vote later in the...
Wall Street kicked off the week with gains on Monday as investors positioned ahead of a data-heavy week that includes two key inflation reports...