European Auto Stocks Take a Hit Amid Tariff Tensions

The automotive sector in Europe experienced significant volatility following the announcement by United States President Donald Trump of imposing a 25% tariff on all non-US-made vehicles. This move has sent shockwaves through the industry, raising concerns over the future of international trade relations and their impact on the auto market.

Stellantis NV Announces Production Halts and Layoffs

In response to the newly imposed tariffs, Stellantis NV has decided to temporarily cease operations at two of its assembly plants located in Canada and Mexico, resulting in the layoff of nearly 5,400 employees. This decision underscores the immediate effects of trade policies on global manufacturing and employment.

Market Reactions: A Closer Look at the Numbers

The stock prices of major European automakers saw a sharp decline in the wake of the announcement. Stellantis' stock fell by 7.07%, while Volkswagen and BMW experienced drops of 2.69% and 4.01%, respectively. Mercedes-Benz wasn't spared either, with its shares decreasing by 4.71%. These figures highlight the market's nervous reaction to the unfolding trade scenario.