European Automakers' Shares Tumble Following U.S. Tariff Announcement

Shares of leading European automobile manufacturers took a significant hit on Thursday after U.S. President Donald Trump announced a 25% tariff on all cars manufactured outside North America. This move has sparked concerns across the global automotive sector, with the European Automobile Manufacturers' Association (ACEA) warning of widespread repercussions, including potential impacts on the U.S. economy.

Market Reactions and Financial Indicators

By midday CET, notable declines were observed across the board: Stellantis NV dropped by 3.93%, Mercedes-Benz Group AG by 3.22%, Bayerische Motoren Werke AG (BMW) by 2.09%, Volkswagen AG by 1.98%, and Ferrari S.p.A. by 1.85%. Concurrently, major European indices such as the DAX, CAC 40, and Euro Stoxx experienced downturns, while the FTSE 100 also recorded losses. On the currency front, the euro and pound sterling saw slight gains against the U.S. dollar.