Market Reaction to New Tariffs

Following the announcement by United States President Donald Trump of a 25% tariff on all cars made outside North America, European automobile companies saw a significant drop in their share prices. The European Automobile Manufacturers' Association (ACEA) has raised concerns, warning that this decision could have far-reaching effects on the global automotive sector, including within the US itself.

Impact on Major Automakers

By midday CET, the financial markets reflected the immediate impact: Stellantis NV shares fell by 3.93%, Mercedes-Benz Group AG by 3.22%, BMW by 2.09%, Volkswagen AG by 1.98%, and Ferrari S.p.A. by 1.85%.

Broader Market Effects

The ripple effects were evident across European indices, with the DAX decreasing by 0.79%, the CAC 40 by 0.50%, and the Euro Stoxx by 0.57%. Meanwhile, the FTSE 100 also experienced a downturn, losing 0.76%. In currency markets, the euro and pound sterling saw slight gains against the US dollar.