European Carmakers' Shares Take a Hit

Following the announcement by United States President Donald Trump of a 25% tariff on all non-US made cars, shares of leading European automobile manufacturers experienced a significant drop. This move has sparked concerns across the global automotive sector, including potential repercussions for the US economy.

Market Reactions and Warnings

The European Automobile Manufacturers' Association (ACEA) has issued warnings about the far-reaching impacts of these tariffs. Notable declines were observed in the stock prices of Stellantis NV, Mercedes-Benz Group AG, Bayerische Motoren Werke AG (BMW), Volkswagen AG, and Ferrari S.p.A., with losses ranging from 1.85% to 3.93%.

Broader Market Effects

The tariff announcement also influenced broader market indices, including the DAX, CAC 40, Euro Stoxx, and FTSE 100, all of which saw decreases. Meanwhile, the euro and pound sterling both gained strength against the US dollar.