European Auto Stocks Take a Hit Amid US Tariff Announcement

European automakers experienced a significant drop in stock prices following the United States President Donald Trump's decision to impose 25% tariffs on all non-US-made vehicles. This move has sent waves of concern across the auto industry, highlighting the growing insecurity among investors and companies alike.

Stellantis NV Reacts with Production Halts and Layoffs

In response to the new tariffs, Stellantis NV announced temporary production stoppages at two of its assembly plants located in Canada and Mexico, alongside plans to lay off nearly 5,400 employees. This decision underscores the immediate impact of the tariffs on the automotive sector's operational strategies.

Market Reactions from Major European Automakers

The stock market reflected the turmoil, with Stellantis' shares falling by 7.07%, followed by Volkswagen and BMW experiencing drops of 2.69% and 4.01%, respectively. Mercedes-Benz also saw a decline, with its shares decreasing by 4.71%. These figures paint a clear picture of the market's nervous reaction to the latest trade policies.