Shares of German carmakers fell due to US's 30% tariffs on imports from the EU.
European business circles are increasing pressure on their politicians to expedite negotiations with Washington. The reason was a statement by US President Donald Trump about his intent to introduce 30 percent tariffs on imports from the EU starting August.
On Saturday, Trump confirmed that from August 1, he expects to raise tariffs on supplies from the European Union and Mexico, which many perceived as an attempt to sway Brussels into signing a trade agreement favorable to the US. The market reaction was swift: by Monday, a noticeable decline in the quotations of European car manufacturers was observed.
Shares of the largest European auto giants, including Volkswagen, Stellantis, BMW, Renault, Mercedes-Benz, and Porsche, fell by 1-2%. The nervousness was amplified by the fact that Trump's letter to Ursula von der Leyen stated: the new tariffs will not replace the existing 27.5% duty on cars imposed in April.
Mercedes-Benz emphasizes that a sustainable partnership between the two regions is vital for the further growth of both economies. They urged the parties to find a common solution as soon as possible.
Analyst Pal Skerta from Metzler Equities notes: the absence of a clear, long-term tariff strategy complicates business planning and increases company expenses. Such uncertainty makes working in global supply chains much more risky and unpredictable.