European Auto Stocks Hit Hard by U.S. Tariffs

In a dramatic turn of events, shares of leading European automakers experienced a significant drop following the announcement of new tariffs by U.S. President Donald Trump. The decision to impose a 25% tariff on all non-U.S.-made vehicles has sent shockwaves through the auto industry, leading to immediate repercussions.

Stellantis NV Takes Immediate Action

Among the first to respond, Stellantis NV announced the temporary closure of two assembly plants in Canada and Mexico, alongside plans to lay off nearly 5,400 employees. This move underscores the tariff's far-reaching impact on the global auto sector.

Market Reactions and Stock Performances

The financial markets reacted swiftly, with Stellantis' stock plummeting by 7.07% to €8.71. Not far behind, Volkswagen saw a 2.69% decrease, while BMW and Mercedes-Benz stocks fell by 4.01% and 4.71% respectively, highlighting the widespread concern among investors.