Azernews.Az

by Aliyeva Alimat

European automakers tumbled on the Frankfurt Stock Exchange on Monday after US President Donald Trump threatened new tariffs, sparking selling pressure across the sector.

Over the weekend, Trump announced plans to impose additional import duties of 10% starting in February, rising to 25% in June, targeting goods from Denmark, Norway, Sweden, Germany, France, the Netherlands, Finland, and the United Kingdom, Azernews reports, citing foreign media.

The announcement sent shockwaves through the European auto industry. BMW shares fell 4.89% by 9:06 a.m. CET, trading at €84.38 each, while Porsche slipped 2.88% to €36.41. A minute later, Volkswagen shares dropped 3.07% to €98 apiece, and Mercedes-Benz fell 3.72%, closing at €56.63. In Paris, Stellantis shares also suffered, declining 3.15% to €8.15 per share.

Market analysts noted that the threat of tariffs is likely to disrupt supply chains and increase costs for European automakers, many of which rely heavily on exports to the US. Some experts suggest that companies may accelerate investments in local production and seek alternative markets to mitigate potential losses.

This development could also reshape global automotive strategies, with electric vehicle production and localization becoming even more critical as manufacturers adapt to an increasingly uncertain trade environment.