Automakers lead European stocks to lower after Donald Trump’s tariff warning
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Automakers led the decline in European stocks on Thursday after U.S. President Donald Trump threatened to crack down on EU goods with 25% tariffs.
Broad Stoxx Europe fell 0.6% in early trading, while Germany’s blue chip DAX index (including several big exporters) fell 1%.
Since taking office last month, Trump posed a threat at his first meeting on Wednesday, saying the EU was “founded to screw up the United States.”
When asked about the EU tariff plan, Trump said: “We have made a decision and we will announce it soon.” “Generally, that’s going to be 25%, that’s going to be cars and everything else.”
Germany’s Volkswagen and Mercedes-Benz fell 2%, while Porsche lost 2.3%. Paris-listed automaker Stellantis fell 2.3%.
This year, European stocks have climbed as the region has so far avoided the worst trade war situation.
“The latest tariff headlines are a reality check on the automotive industry and the broader EU market,” said Barclays analyst Emmanuel Cau.
